Why Chembio Diagnostics Shares Are Falling

Chembio Diagnostics Inc CEMI shares are trading lower by 12.4% at $0.81 after the company reported worse-than-expected fourth-quarter adjusted EPS results.

Chembio Diagnostics reported quarterly losses of 32 cents per share which missed the analyst consensus estimate of a loss of 20 cents per share by 60 percent. Chembio Diagnostics also reported quarterly sales of $20.57 million which beat the analyst consensus estimate of $13.55 million by 52%. This sales figure represents a 101% increase over sales of $10.23 million in the same period last year.

"In the fourth quarter, record quarterly revenue was driven by execution of the largest purchase order in company history, received from Bio-Manguinhos for DPP SARS-CoV-2 Antigen Tests in Brazil, while navigating the tight labor market and global supply chain issues for certain test components to ramp production. Chembio also finished the year with record annual revenue," said Richard Eberly, Chembio's President and Chief Executive Officer.

"We are confident our investments in developing products in high value growing markets and registering existing products in additional geographies can drive sustained growth over the long-term. We are optimistic about our ability to improve profitability through continued product revenue growth and reduction of our cost infrastructure beginning in 2022," Eberly stated.

Chembio Diagnostics develops, manufactures, and commercializes point-of-care diagnostic tests that detect infectious diseases.

Chembio Diagnostics has a 52-week high of $7.34 and a 52-week low of $0.80.