Analyst Says Maravai LifeSciences Not Immune From Macro Headwinds As Guidance Lags Consensus

Maravai LifeSciences Holdings Inc's MRVI Q1 revenue fell 68% Y/Y to $79 million, slightly below the consensus of $79.72 million.

Nucleic Acid Production revenue was $61.5 million, representing a 73% decrease year-over-year, including an estimated $15.9 million of COVID-19-related CleanCap revenue, which was $157.0 million lower than the same period in the prior year as CleanCap demand from COVID-19 vaccine manufacturers decreased. 

Base Nucleic Acid Production revenue was $45.5 million.

Guidance: Maravai LifeSciences cuts its FY23 sales guidance from $420-$460 million to $400-$440 million versus the consensus of $430.17 million.

The company forecasts adjusted EPS of $0.27-$0.33, down from $0.32-$0.38 compared to the consensus of $0.35.

William Blair writes that results were in line and the guide-down was not entirely unexpected given similar commentary around headwinds and guidance cuts from peers.

The analyst says even reduced guidance is more back-half loaded than usual due to destocking, China, and macro headwinds, so it would not be surprising to see shares under pressure as investors weigh the transition to a non-COVID story with the near-term pressures on growth and profitability. The analyst reiterated Outperform rating.

Price Action: MRVI shares are down 11.9% at $12.24 on the last check Tuesday.