Neptune Pops And Drops After New Guidance

Shares of Neptune Technologies & Bioressources (NASDAQ: NEPT), a biotechnology company that focuses on the development of marine-derived omega-3 polyunsaturated fatty acids (PUFAs), spiked by more than 5 percent before selling off.

Neptune announced preliminary results for the fourth quarter which exceeded Wall Street's expectations.

Neptune Technologies said it expects to record revenue of $10.5 million in the quarter, which is ahead of Wall Street's $9.7 million estimate. The company added that its revenue expectation represents an approximate 90 percent increase over its third quarter results and a 172 percent increase compared to the same quarter a year ago.

Neptune Technologies also said it expects to record a positive EBITDA for the first time since the third quarter of 2012.

"These preliminary results include two solid months of contribution from the recent acquisition of Biodroga, a leading turnkey dietary supplement solution provider," indicated Jim Hamilton, President and CEO. "We are pleased with the progress made in the execution of our strategic plan and Biodroga's business represents an important building block for the future. Looking into Fiscal 2017, we expect to achieve positive EBITDA and demonstrate significant top-line growth."