Maravai LifeSciences Holdings Lowers Revenue Outlook for 2023

Maravai LifeSciences Holdings experienced a significant drop in its shares, causing a decline of 11% in the aftermarket trading session. The company revised its revenue forecast for the year 2023, leading to this decrease.

The stock closed at $11.02, down 4.2% for the day and experiencing a total decline of 23% for the year.

Maravai LifeSciences Holdings specializes in providing life-science reagents and services to researchers and biotech innovators. The company now expects its revenue for 2023 to range between $300 million and $325 million. Additionally, it anticipates adjusted earnings per share to be in the range of 4 cents to 8 cents.

Previously, the company had set a higher outlook, with revenue projected to be between $400 million and $440 million, and adjusted earnings per share estimated to be between 27 cents and 33 cents.

Trey Martin, the Chief Executive of Maravai LifeSciences Holdings, explained that the decision to revise the forecast was influenced by a more cautious approach by key customers. These customers are prioritizing capital preservation and strategic planning due to the economic uncertainty prevailing in the market. There has also been a decrease in venture and private equity-backed investment activity.

Moreover, Martin highlighted changes in customer spending priorities, including tighter research and development budgets and longer decision-making processes.

The revised outlook reflects Maravai LifeSciences Holdings' response to the evolving market conditions and its commitment to navigate the challenging landscape effectively.