Global Cord Blood Corporation (CO) Reports Q3 EPS of $0.15, Revenues Beat

Global Cord Blood Corporation (NYSE: CO) reported Q3 EPS of $0.15. Revenue for the quarter came in at $44.6 million versus the consensus estimate of $38.02 million.

Third Quarter Fiscal 2021 Highlights

• Revenues decreased by 13.1% year-over-year ("YoY") to RMB290.8 million ($44.6 million).
• New subscribers and accumulated subscriber base were 17,802 and 882,982[1], respectively.
• Gross profit decreased by 13.1% YoY to RMB245.9 million ($37.7 million). Gross margin remained at 84.6%, same as the prior year period.
• Operating income decreased by 18.9% YoY to RMB124.0 million ($19.0 million). Operating margin decreased to 42.6% from 45.7% in the prior year period.
• Operating income before depreciation and amortization ("non-GAAP operating income"[2]) decreased by 17.4% YoY to RMB136.3 million ($20.9 million).
• Net income attributable to the Company's shareholders decreased by 19.6% to RMB116.6 million ($17.9 million).

Net cash provided by operating activities was RMB145.0 million ($22.2 million).

"Despite the ongoing challenges due to COVID-19, lower newborn numbers, and cautious consumer sentiment, we managed to recruit 17,802 new subscribers in the third quarter, keeping us on track to meet our annual target," said Ms. Ting Zheng, Chief Executive Officer and Chairperson of GCBC. "Although the National Health Commission announced a new policy that no cord blood banking license applications would be accepted in 2021, new developments on industry regulations remain largely uncertain. As such, we must continue to communicate with regulatory bodies and remain vigilant regarding other changes that may arise within the industry. We intend to leverage our advantages as the industry leader to increase penetration in existing markets and seize available opportunities to expand our business and services."

For earnings history and earnings-related data on Global Cord Blood Corporation (CO) click here.

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