Georgia-based biopolymer manufacturer Danimer Scientific (DNMR) has reported excellent financial results for the second quarter of 2021. At the time of writing, shares of the company were up 11.7% in Tuesday’s pre-market trade.
Danimer makes use of PHA and other biopolymers to develop applications like thermoforming, injection molding, hot melt adhesives, film resin, fibers, extrusion lamination, extrusion coating, aqueous coatings and additives.
The company reported earnings per share (EPS) of $0.39, beating the Street’s estimate of a loss of $0.07 per share. DNMR had reported a loss of $0.06 per share a year ago. (See Danimer stock chart on TipRanks)
Revenues increased 22% year-over-year to $14.5 million, surpassing analysts’ expectations of $11.8 million. Products revenue totaled $11.3 million, up from $10.6 million reported in the second quarter of 2020. Services revenue rose to $3.2 million from $1.3 million in the previous year.
The CEO of Danimer, Stephen E. Croskrey, said, “During the second quarter 2021, we made further inroads in our mission to create consumer packaging and other biodegradable products which address the global plastic waste crisis.”
For full-year 2021, the company expects capital expenditures to be in the range of $125 million to $150 million. Its shares closed 13.7% lower at $13.27 on Monday.
Last month, Jefferies analyst Laurence Alexander maintained a Buy rating on the stock with a price target of $42. The analyst expects Danimer to report a loss of $1.12 per share in the third quarter.
Overall, the stock has a Moderate Buy consensus rating based on 1 Buy. The average Danimer Scientific price target of $42 implies 216.5% upside potential. Shares have lost 71.2% over the past six months.
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