ChromaDex Q3 Earnings: Can NasdaqCM:CDXC Hit Its -$0.09 EPS Target?

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ChromaDex Corporation (NasdaqCM:CDXC) is scheduled to report Q3 earnings results after markets close for trading on November 4, 2020.

The company is expected to report earnings of -$0.09/share on revenue of $14.763 million. The consensus earnings per share (EPS) of -$0.09/share is based on a poll of 6 analysts and represents a growth in eps of 25.0% over the same quarter last year, when the company reported earnings of -$0.12/share.

The revenue forecast of $14.763 million based on a poll of 6 analysts implies a year-over-year (YoY) growth in revenue of 22.5%. Last year the company reported $12.053 million in revenue for the quarter.

Expected to report EPS of -$0.09/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $14.76 $12.05 22.5%
EPS -$0.09 -$0.12 25.0%

Earnings Call Trends

Historically, management has exceeded analyst expectations 2 out of the last 8 tracked quarters, missed 4 quarters, and met expectations 2 quarters.

What are your expectations from ChromaDex Corporation for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.10 -$0.06 37.9% Beat
Q1, 2020 -$0.11 -$0.10 7.0% Beat
Q4, 2019 -$0.11 -$0.11 0% Met
Q3, 2019 -$0.12 -$0.12 0% Met
Q2, 2019 -$0.13 -$0.14 -5.0% Missed
Q1, 2019 -$0.12 -$0.15 -28.6% Missed
Q4, 2018 -$0.14 -$0.15 -9.8% Missed
Q3, 2018 -$0.13 -$0.16 -28.0% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −3.2%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 6, 2020 $5.14 $4.97 −3.2% Decline
May 11, 2020 $5.46 $5.16 −5.5% Decline
March 10, 2020 $3.51 $3.68 4.8% Increase
November 12, 2019 $2.85 $3.02 6.0% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.59, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.59 implies a 0.0% chance of earnings manipulation.

Fundamentals And Technical Analysis

ChromaDex Corporation is currently trading at $4.51/share, down −2.6% for the day. The company is trading at approximately 75.2% of its 52-week high of $6/share. The company’s stock price is down −9.3% since the last earnings report and down −6.4% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 42.41 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqCM:CDXC Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −10.86 and a forward P/E multiple of −13.39.

ChromaDex Corporation’s current share price also implies a price-to-book (P/B) multiple of 12.92. The following table summarizes some other key fundamental ratios:

Data as of November 1, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $4.51
P/E Ratio −10.9x
P/E Ratio (Fwd) −13.4x
PEG Ratio −0.4
Total Debt / Total Capital 0.5%
Levered Free Cash Flow -$15.689 million
EV / EBITDA −11.3x

Finbox

ChromaDex Corporation is a micro-cap stock with a market capitalization of $278.8 million and a total enterprise value of $261.4 million. The company operates in the Healthcare sector and the Life Sciences Tools & Services industry.

ChromaDex Corporation operates as a nutraceutical company. The company offers Nicotinamide riboside (NIAGEN), a novel form of vitamin B3 for enhancing nicotinamide adenine dinucleotide (NAD) level used for healthy aging; and Immulina, a spirulina extract and compound, which is used for improving human immune function. It also provides reference standards and fine chemicals to conduct quality control of raw materials and consumer products in dietary supplements, cosmetics, food and beverages, and pharmaceutical industries. The company markets and sells its products directly in the United States and Canada; and through international distributors. ChromaDex Corporation is headquartered in Los Angeles, California.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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