Marrone Bio Innovations Inc (NASDAQ:MBII) issued a letter to shareholders with a positive outlook. Is it enough to turn the stock around?
Market Action
Shares of MBII closed Thursday at $1.42 losing 1.39% on the day. Volume traded stood at 0.886 million shares, more than double its average daily volume of 0.400 million. Trading opened the day at 1.43 and had a range between 1.49 and 1.32.
MBII Issues Shareholder letter
- We reported our 11th consecutive quarter of increased revenues and our 10th consecutive quarter of gross margins above 50%.
- First-quarter spending declined on an absolute basis by 11%, and the ratio of operating expenses to sales was 91%. Both metrics are a testament to our ability to grow revenue and margins while managing costs.
- We believe this quarter was an early indicator of our capabilities and of our upward trajectory as we target reaching breakeven on an Adjusted EBITDA basis.
- We recently raised our outlook for 2021 to grow revenues in the upper 20% range and target annual gross margins in the upper 50% range, while we manage operating expenses to flat with 2020 levels, plus inflation.
Trader Notes
MBII continues to fall. It had a slight bounce Thursday off a resistance area back in 2020. MBII trades below all its major moving averages. RSI (14) of 41.36 indicates negative sentiment.
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