A stock that is quite likely to be in focus among investors this morning is that of Evofem Biosciences Inc (NASDAQ:EVFM). It had emerged as one of the major gainers on Wednesday and had managed to clock gains of as much as 22% for the day amidst significant interest.
Trading Data
On Wednesday, EVFM stock soared 22.86% to $0.4875 with 12.99 million shares, compared to its average volume of 4.26 million shares. The stock has moved within a range of $0.4100 – 0.5100 after opening trade at $0.42.
Earnings Review
In this context, it could be a good move to take a closer look at the positive trigger that had led to the rally yesterday. The bullish sentiment came about after the company announced its preliminary results for the fourth fiscal quarter of 2021.
Evofem announced that it had managed to generate as much as $3.5 million in the form of preliminary net product sales. That reflected a significant rise of more than 100% in the same metric from the third quarter numbers. On the other hand, investors were perhaps glad to note that the cash burn rate had also dropped substantially in the fourth quarter of 2021 to $17 million.
In the previous quarter, the cash burn rate had stood at as much as $32 million. It now remains to be seen if the stock can continue to maintain its upward trajectory today and tomorrow.
Key Quote
“Strong demand for Phexxi and gross-to-net improvement in the fourth quarter enabled us to deliver over $3.5 million in net sales – more than twice Q3 levels, and ahead of the current consensus estimate,” said Saundra Pelletier, CEO of Evofem Biosciences.
Technical Data
EVFM stock is trading above the 20-Day and 50-Day Moving averages of $0.41 and $0.45 respectively. However, the stock is trading below the 200-Day moving average of $0.84.
