ImmuCell Reports Y/Y Q1 Earnings Growth on Record Sales & Margin Gains

Shares of ImmuCell Corporation ICCC have gained 3.9% since reporting results for the first quarter of 2025. This compares with the S&P 500 index’s 5.5% rise over the same time frame. Over the past month, the stock has jumped 11.2% against the S&P 500’s 13.5% rally.Revenue & Earnings SurgeImmuCell posted a strong financial performance for the first quarter of 2025, delivering a record $8.1 million in product sales, up 11% from $7.3 million in the prior-year period. The rise marked a continuation of momentum established in late 2024. Net income turned positive to $1.45 million from a net loss of $438,000 in the same quarter a year ago. This swing was driven by sales growth and gross margin expansion. Earnings per share improved to 16 cents from a loss of 6 cents per share in the prior-year quarter.ImmuCell Corporation Price, Consensus and EPS Surprise  ImmuCell Corporation price-consensus-eps-surprise-chart | ImmuCell Corporation QuoteOther Key Business MetricsThe gross margin for the quarter improved to 42% from 37% in the fourth quarter of 2024, and is significantly higher than the margin reported a year ago when the company faced elevated scrap and contamination-related costs. This progress reflects operational normalization following production disruptions in 2022 and 2023.Adjusted EBITDA for the first quarter came in at $2.3 million, a sharp rise from $458,000 in the prior-year quarter. For the trailing 12 months ended March 31, 2025, adjusted EBITDA totaled $3.3 million, up from a $280,000 loss in the comparable period.First Defense — ImmuCell’s flagship product line for scours prevention in calves — accounted for the majority of sales. Tri-Shield, which contains E. coli, coronavirus and rotavirus claims, represented 71% of First Defense product sales for the quarter. Management noted that expanded capacity and the diversification of delivery formats, including gel tubes and a soon-to-launch bulk powder product, are improving customer reach and supporting revenue growth.Management CommentaryCEO Michael Brigham emphasized that the business has become larger, more complex and increasingly diversified, driven primarily by the strength of First Defense and continued investment in production capacity. The company’s annualized manufacturing capacity has been scaled to support $30 million in sales. Brigham also noted that contamination issues that affected the prior quarters have been successfully remediated, with no new events since April 2024.New CFO Tim Fiori highlighted cost control and operational improvements, particularly in managing fixed costs across higher sales volumes. He also mentioned that gross margin expansion and improved adjusted EBITDA are the key to driving long-term profitability, especially with many fixed facility and labor costs already in place.Factors Influencing the Headline NumbersThe turnaround in profitability and margins stems from a combination of operational stability, capacity expansion and higher sales volumes. Past contamination events had led to increased scrap costs and disrupted inventory flow.However, the company has operated without further contamination incidents for over a year, allowing for better yields and manufacturing efficiencies. Additionally, customer demand for Tri-Shield has risen sharply, reflecting the product’s strong efficacy claims compared with traditional dam-level vaccines.Sales were also buoyed by improved distribution and a strengthened sales team that includes four regional managers, a commercial stakeholder leader, and a marketing director. The backlog of orders, which had accumulated during supply disruptions, has been gradually reduced, standing at $4 million as of March 31 and falling further to $3.4 million by early May.GuidanceImmuCell stated that its backlog reduction and increased production capability position it well for continued sales growth. The company expects the recently introduced investigational product use of Re-Tain to yield valuable field feedback, which could help shape future commercialization strategies. Brigham acknowledged that while full FDA approval for Re-Tain remains pending due to manufacturing inspection delays, the investigational phase will allow for data collection on product performance in real-world settings.Other DevelopmentsThe company confirmed that it paused a $4-million investment to bring formulation and aseptic filling for Re-Tain in-house. This initiative may resume once further clarity is achieved regarding FDA licensing timelines and strategic options.Overall, ImmuCell’s first-quarter performance demonstrated solid operational recovery and financial improvement, driven by sustained demand for its core products and improved execution following prior-year setbacks.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ImmuCell Corporation (ICCC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks