Why Shares of Zomedica Were Zooming Monday

What happened

Shares of Zomedica (NYSEMKT:ZOM) were up by 10% Monday morning after being up as much as 21.1% right after the opening bell. The company's move up was more of a reactionary one, as the stock hit its lowest point since Jan. 5 on Friday, falling to $0.19 a share. The stock has a 52-week low of $0.15 and a 52-week high of $0.41 and is up more than 23% so far this year.

So what

Zomedica, a veterinary health company that sells products for horses, dogs, and cats to clinical veterinarians, has been frustrating growth investors for a while, but some may have overreacted to the bad news in its fourth-quarter and full-year earnings report, which it released March 15.

The good news in the report is the company is boosting revenue at an impressive rate, rising 51% year over year, to $6.2 million in the quarter and by 361% to $18.9 million for the year.

The bad news is that Zomedica hasn't been and still isn't profitable. However, its $17 million loss for the year represented an 8% improvement, and its loss of $1.97 million loss for the fourth quarter was an improvement of 40.4% over the same period last year.

The reason for the surge in revenue was attributed to a full year of PulseVet sales (the company was acquired in 2021 for $70.9 million) and the addition of the recently acquired Assisi products.

Now what

The company also appointed a new CFO on Friday, Peter L. Donato, who is replacing the retiring Ann Marie Cotter. The key for Zomedica will be whether it will be able to curtail administrative costs enough to continue to move closer to making a profit. At its current price, investors may feel that the company's obvious risks may be worth it because of its impressive growth.

10 stocks we like better than Zomedica Pharmaceuticals Corp.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Zomedica Pharmaceuticals Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of March 8, 2023

Jim Halley has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.