Small Cap. Stocks On The Radar Watch: OSUR, AMRX, KTOS, TWST, ALHC

There is a massive following for all categories of stocks, and small-cap stocks often get a lot of attention from investors. Some of the biggest companies in the world were once small-cap stocks, and hence, the long-term payoff can often be massive. The feature would take you through five small-cap stocks that could be tracked at this time.

OraSure Technologies Inc. (NASDAQ:OSUR): Point of care, specimen collection devices, analytical services, microbiome laboratories, and home diagnostics leader OraSure Technologies Inc. announced its financial results for the quarter that ended on June 20, 2023, on August 3. The company generated net revenues to the tune of $85.4 million, which reflected a year-on-year rise of 6%.

The revenues from the InteliSwab test alone made up $47.5 million of that and also grew 10% year over year. On a sequential basis, it went up by 60%. At the end of the quarter, the cash and cash equivalents went up to $185.9 million. The cash balance went up by $73.5 million, and that was primarily due to the strong account receivables collection.

The gross margin by GAAP was 30.9% in the quarter, but it was lower than the 34.6% in the prior-year period. The Chief Executive Officer and President of the company, Carrie Eglinton Manner, noted that OraSure Technologies continued to be on a path of progress in the quarter. The effective execution of its strategies led to better performance in terms of InteliSwab contracts and also led to efficiencies across its business operations.

Amneal Pharmaceuticals Inc. (NASDAQ: AMRX) On August 4, Amneal Pharmaceuticals Inc. announced its financial results for the second fiscal quarter that ended on June 30, 2023. The net revenues for the quarter came in at $599 million, which worked out to a 7% rise on the $559 million generated in the prior-year period. The revenues went up mainly due to growth in generics and also because of new product launches.

The company recorded net income of $12 million, which was a strong turnaround from the $121 million in net losses in the prior-year quarter. The diluted earnings per share in the quarter stood at $0.08 as compared to diluted losses per share of $0.80 in the prior-year period. Amneal Pharmaceuticals also raised its projections for the full year. The revenue projections were boosted to the $2.30 billion to $2.40 billion range from the previous projection in the $2.25 billion to $2.35 billion range.

Kratos Defense & Security Solutions (NASDAQ: KTOS) The defense specialist Kratos Defense & Security Solutions surpassed expectations in its quarterly results, which were announced on August 3. The performance led to a rally in the stock last Friday and a 15% rally in the morning. The defense contractor, which is involved in drones and electronics, announced revenues of $256.9 million to go along with earnings of $0.09 a share.

The performance beat the consensus estimate of $235 million for revenues and earnings of $0.06 a share. Eric DeMarco, the Chief Executive Officer of the company, noted that the integration of Artificial Intelligence into the Valkyrie product in collaboration with the company’s partners was expected to lead to fresh orders. The company had suffered due to the slow process of procurement and also from stiff competition from peers like Boeing.

The stock has suffered as well, and even after the gains on Friday, the Kratos is still down by 50% from its highest historic levels hit in 2021.

Twist Bioscience (NASDAQ: TWST) Twist Bioscience announced its financial results for the third fiscal quarter this past Friday, which led to a 14% gain by the afternoon of the same day. The biotech company, which is involved in making synthetic biology and advanced sequencing tools, announced a 14% year-on-year rise in revenues, which came in at $63.7 million.

The net loss for the quarter went down to $57.4 million from $60.5 million in the prior-year quarter. The loss per share for the third quarter was $0.01, as opposed to $1.08 in the prior-year period. The earnings figures also surpassed the consensus estimates from analysts.

Alignment Healthcare Inc. (NASDAQ: ALHC) On August 3, Alignment Healthcare Inc., a tech-powered Medicare Advantage firm, announced its financial results for the second fiscal quarter ended June 30, 2023. The company announced that the health plan membership figure had gone up to 112,000, which reflected a year-on-year rise of 175.

The total revenues generated by the company were $462.4 million, which worked out to a year-on-year rise of 26.2%. The health plan premium revenues stood at $524.7 million, which reflected growth of 21% year over year. The adjusted EBITDA was $2.1 million, and the net loss for the quarter stood at $28.5 million.