Oppenheimer Comments on Chromadex's Q4 2019 Earnings Results $CDXC

Chromadex (ticker: CDXC) reported Q4 2019 results yesterday. The following are comments from Oppenheimer analyst Brian Nagel:

• Q4 Trends at CDXC Imply Continued Business Model Progress

• Last night, Outperform-rated ChromaDex (CDXC) reported Q4:19 (Dec.) results and commented a bit on expectations for 2020. We launched coverage of CDXC in late 2019 and identified the company and its shares as a very compelling, albeit highly speculative, investment play within the burgeoning consumer healthcare space. As we examine closely recent trends at CDXC, we are increasingly upbeat toward indications of continued outsized top-line expansion and improving expense leverage within the company’s model. Comments from management imply clearly progress upon now long-standing legal issues for CDXC, and the balance sheet seems supportive of ongoing growth and investment.

• Ongoing robust top-line growth coupled with stronger than expected gross margins helped offset a rise in G&A expense.

• Year-over-year GM improvement resulted primarily from a favorable mix shift to higher margin TRU NIAGEN consumer products

• Guidance: Management expects modest top-line sales growth and marketing spend to increase $3-5M.

• Within the full-year outlook, gross margin should expand on top of ~56% in FY19 due to a favorable mix from growing e-commerce business.

• PT: $6

More CDXC analysis HERE.

Disclosure: Long CDXC

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