tiprankstipranks
Neuronetics Cuts Q3 Revenue Guidance; Shares Tank 27% Pre-Market
Market News

Neuronetics Cuts Q3 Revenue Guidance; Shares Tank 27% Pre-Market

Commercial stage medical technology company Neuronetics Inc. (STIM) expects to report total revenue of $13.8 million in the third quarter of 2021, lower than the previously issued guidance of $15 million to $16 million and the Street’s estimate of $16.51 million.

Following the announcement, shares of the company declined nearly 27%, at the time of writing, in pre-market trade on Wednesday.

Based out of Pennsylvania, Neuronetics is engaged in the design, development and sale of products to treat patients suffering from neuro health disorders. (See Top Smart Score Stocks on TipRanks)

For 2021, the company expects revenue in the range of $53.3 million to $54.3 million, lower than the earlier announced guidance range of $59 million to $63 million and analysts’ expectations of $61.67 million.

The President and CEO of Neuronetics, Keith J. Sullivan, said, “Our third-quarter revenue came in lower than anticipated primarily due to our new sales team requiring additional time to get to full productivity as a result of extended sales cycles driven in part by the uncertain COVID-19 environment.”

“Despite the uncertainty in the market, we have continued to make solid progress on our strategic initiatives to drive future growth,” Sullivan added.

After the company announced preliminary revenue for the third quarter, Piper Sandler analyst Matthew O’Brien reiterated a Buy rating on the stock with a price target of $12 (87.5% upside potential).

The analyst expects a sequentially “weaker” Q4. He said that while the update was not surprising, it would not be welcomed by investors.

Overall, the stock has a Moderate Buy consensus rating based on 2 Buys and 1 Hold. The average Neuronetics price target of $15 implies 134.4% upside potential. Shares have lost approximately 50% over the past six months.

Related News:
Apple Likely to Slash 2021 iPhone Production Targets — Report
LG Electronics to Reimburse GM for Bolt EV Recall — Report
Tesla Sells Record 56,006 China-Made Vehicles in September — Report

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles