Solazyme’s stock price at record low

Solazyme Inc. (NASDAQ:SZYM) a producer of renewable oils from algae, declined the most on record after its third-quarter revenue fell short expectations and it said sales next year will miss estimates even more.

Solazyme tumbled 49 percent to $3.80 at 11:55 a.m. in New York, the most intraday since its May 2011 initial public offering and the lowest price on record.

Revenue in the third quarter was $17.6 million, South San Francisco, California-based Solazyme said in a statement after the close of trading yesterday. That was lower than the $19.6 million average of eight analysts’ estimates compiled by Bloomberg.

Production issues at the company’s plant in Moema, Brazil, led Solazyme to lower its revenue forecast for 2015 to about $75 million, well short of the $300 million estimate from Jeff Osborne, an analyst with Cowen & Co.

“The loss of Moema’s rapid volume-growth expectations” were among the “primary concerns for our more cautious view on the stock,” Osborne wrote in a note to investors today. He lowered his rating to the equivalent of hold with a 12-month price target of $7. Solazyme also was downgraded today by Robert W. Baird & Co. and yesterday by Pacific Crest Securities LLC.

Solazyme Equity Analysis

Solazyme Inc. (NASDAQ:SZYM) opened trading today as $4.00 and is trading in the range of 3.33-4.13 today. Solazyme’s current market cap stands at $264.03 million.

Compared to other peers in the Oil & Gas Refining & Marketing sector, Solazyme has outperformed in terms of quarterly revenue growth year over year at 0.43 vs. the industry average of 0.13. Solazyme’s earnings per share is currently at -2.03, which is below then the sector average of 1.30.

Solazyme is currently covered by 9 Wall Street analysts. The mean target price is $11.89 according to First Call. This presents a solid upside to the current price of the equity. The Mean Recommendation sits at 2.2,which is based on 2 Strong Buy, 4 Buy and 2 Hold ratings.

The most recent analyst actions consisted of Robert W. Baird downgrading the stock on November 6th

The current quarter EPS consensus estimate is -0.42 with revenue estimates of 17.56M. Sales are expected to grow at a 65.30% rate. Solazyme reported actual earnings last quarter of -0.43 which fails to beat the -0.36 consensus estimate, a -19.40% surprise.

Corporate Profile

Solazyme, Inc. manufactures and sells renewable oils and other bioproducts. Its proprietary technology transforms a range of plant-based sugars into triglyceride oils and other bioproducts. The company offers renewable tailored oils, such as oleic oils that provide sustainable solutions within the food, lubricant, functional fluid, and oleo chemical markets; and drop-in replacements and blend stocks for marine, motor vehicle and jet fuels, as well as replacements for petrochemicals. It is also provides fuels, including SoladieselBD, a fatty acid methyl ester; SoladieselRD, a hydro-treated renewable diesel; SoladieselHRD-76, a military grade hydrotreated renewable diesel; and SolajetD7566 and SolajetHRJ-5 that are commercial and military grade hydrotreated renewable jets. In addition, the company offers microalgae-based food ingredients consisting of tailored oils and whole algal powders that enhance the nutritional profile and functionality of food products; and powdered ingredients comprising whole algal flour, whole algal protein, and golden chlorella high protein. Additionally, it provides skin and personal care products under the Algenist brand name, which include concentrated reconstructing serum, an anti-aging serum; complete eye renewal balm; firming and lifting cream, an anti-aging moisturizing cream; advanced anti-aging repairing oil, a face oil formulation; and genius cream.

 

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