Yesterday, Cytori (CYTX) released their earnings report for the fourth quarter as well as the entire year of 2014. Unfortunately, the news wasn’t as good as investors would have liked. As a result, the company’s stock price fell hard in morning trading today; losing more than 9%. However, the momentum has changed direction and Cytori (CYTX) is back in the green. So, today we’ll talk about what we saw with regard to earnings, how investors reacted to the earnings report, and what seams to be the reason for Cytori (CYTX) stocks being back on the rise.
Cytori (CYTX) Earnings Report Was Far Less Than Impressive
- Earnings Per Share – In the fourth quarter, Cytori (CYTX) produced a loss of $0.08 per share.
- Q4 Revenue – In the fourth quarter, Cytori (CYTX) generated $2.47 million in total revenue.
- Operating Cash – In the fourth quarter, the company’s operating cash decreased to $4.9 million.
- Full Year Revenue – In the year of 2014, Cytori (CYTX) generated $5 million in total revenue.
- Full Year Contract Revenue – In the year 2014, Cytori generated $2.6 million via contract revenue (half of which was generated in Q4).
- Full Year Loss – $38.5 Million was the total loss over the course of the year 2014; equating to $0.48 per share.
How Investors Reacted To The Earnings Report
As you could imagine from the information shared above, investors were less than happy with the report both on a quarterly level and on an annual level. Following the poor report, the stock fell by more than 9%. However, it seems as though investors are starting to look past the losses as the stock is showing an impressive end of day recovery. After falling more than 9% from yesterday’s previous close, the stock is now in the green; with growth above 6% from yesterday’s close.
Why Are Cytori (CYTX) Stocks Climbing In Value?
One thing that we have to keep in mind is that while the overall earnings report wasn’t great, all of the information wasn’t bad. For instance, over the course of the entire year of 2014, the company generated $2.6 million via contracted revenue. However, $1.3 million of the entire year’s total was generated in the fourth quarter; insinuating strong upward growth.
Another big development that happened yesterday that investors seem to have pushed to the side was the fact that Cytori (CYTX) regained it’s NASDAQ listing compliance status with regard to the stock’s market value.
What We Can Expect Moving Forward
When it comes to Cytori (CYTX), I can see the stock rising, however repeat losses are a major concern for me. While I wouldn’t buy until I see sustained growth, this is definitely one to watch closely. While I do have a strong feeling that the value of the stock will most likely grow; I’m still not 100% confident.
What Do You Think?
Do you think Cytori (CYTX) stocks will rise or fall in value in the long run? Why? Let us know in the comments below!