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LANGHORNE, Pa. - NEXGEL, Inc. (NASDAQ: NXGL), a prominent manufacturer of hydrogel products for medical and consumer applications, has reported preliminary revenue figures for the second quarter of 2024 and provided future revenue guidance. The unaudited report shows a second-quarter revenue of $1.4 million, marking a 20% increase year-over-year and a 10% sequential rise.
The company also forecasts a significant revenue boost in the upcoming two quarters, with expectations of $2.2 million in the third quarter, up 83% year-over-year, and $2.6 million in the fourth quarter, a 140% increase from the previous year.
CEO Adam Levy expressed satisfaction with the record-breaking second-quarter results, attributing them to strong performance despite challenges faced by CG Converting and Packaging (NYSE:PKG) during a transition to a new facility.
Levy highlighted the growth in contract manufacturing, driven by new partnerships with major global corporations, and noted substantial growth across several of the company's brands. Silly George, in particular, has seen robust consumer demand for its new Pop-On Lash product line, introduced in May.
Levy also projected that the company's performance in the latter half of the year would set the stage for a positive cash flow from operations. While these projections do not yet include potential revenue from a relationship with AbbVie (NYSE:ABBV), the anticipated growth is seen as a solid foundation for future financial health.
NEXGEL's portfolio includes healthcare, beauty, and over-the-counter products like Silverseal®, Hexagels®, Turfguard®, Kenkoderm®, and Silly George®. The company has also established strategic contract manufacturing relationships with leading healthcare companies.
The preliminary financial information is based on current estimates and assumptions and has not been reviewed by independent auditors. As such, the final reported figures for the second quarter, which ended on June 30, 2024, may differ. The company cautions that these preliminary results are not a substitute for the full financial statements prepared in accordance with U.S. accounting principles, which are yet to be finalized.
This news is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. Consequently, actual results may vary materially from current expectations. NEXGEL has disclaimed any obligation to revise any forward-looking statements in the future.
InvestingPro Insights
NEXGEL, Inc. (NASDAQ: NXGL) has shown impressive year-over-year revenue growth, as highlighted in their recent preliminary report. The unaudited figures demonstrate a 20% increase in second-quarter revenue and projections for continued robust growth in the latter half of the year. Here are some key metrics and tips from InvestingPro that provide additional context to NEXGEL's financial landscape:
InvestingPro Data indicates a striking 108.41% revenue growth for the last twelve months as of Q1 2024, underscoring the company's expanding financial performance. Despite not paying dividends to shareholders, the company's market capitalization stands at $13.76 million USD, with a Price / Book ratio of 2.69 as of the last twelve months.
Two pertinent InvestingPro Tips for NEXGEL include the company's rapid cash burn and the analysts' consensus that profitability may not be on the horizon for this year. Additionally, the company operates with a moderate level of debt and has not been profitable over the last twelve months.
While CEO Adam Levy has a positive outlook on the company's direction, these InvestingPro Tips suggest that investors should be aware of the financial challenges NEXGEL faces. For a deeper dive into NEXGEL's financials and additional expert insights, readers can explore more tips at https://www.investing.com/pro/NXGL. There are 5 additional InvestingPro Tips available, which can provide a more comprehensive understanding of the company's financial health.
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