Global Cord Blood Sees 4% Stock Drop Despite Improvement
Although Global Cord Blood Corporation (NYSE: CO) reported a two-digit increase in revenue for the quarter through June, its stock declined nearly 4 percent Wednesday in New York.
The life sciences company said its revenue reached $39.8 million in the first fiscal quarter, representing 17 percent increase from the corresponding period in 2018. Its net income hit $15.8 million in the first quarter, or 13 cents per American depositary share, up 47 percent year-over-year.
"Even though macro-economic uncertainty continued to pressure consumer spending on preventive healthcare services, we managed to record 20,815 new subscribers, in line with our expectations," Ting Zheng, the chief executive officer of Global Cord, said in a Wednesday statement.
The Hong Kong-based firm offers cord blood collection, laboratory testing, hematopoietic stem cell processing and stem cell storage services. It reported its subscribers reached 770,699 as of June.
"On one hand is the pending expirations of the existing licensing regimes, and at the same time is the company's future growth and the ability to expand our services to go beyond just purely Cord Blood banking within one single market," Albert Chen, the chief financial officer, said in a call with analysts today when asked about the reason why the company didn't pay a dividend.
The company claimed that it is the first cord blood banking operator approved by the Ministry of Health of the People's Republic of China to engage in the cord blood banking business, according to its official website.
Shares in Global Cord Blood Corporation closed at $4.43 per ADS, down nearly 4 percent Wednesday.
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