Shares of medical device company Sight Sciences (NASDAQ:SGHT) have plummeted nearly 31% in the pre-market session today after its updated financial outlook disappointed investors.
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Despite high account retention in its Surgical Glaucoma segment, SGHT is experiencing a decrease in new account additions. Owing to uncertainty for glaucoma customers from the proposed local coverage determinations, the company now expects utilization levels to decrease in the third quarter. Consequently, it now expects revenue for the quarter to hover in the range of $19 million and $20 million.
Furthermore, SGHT also expects revenue from its Dry Eye segment to decline sequentially owing to seasonality. Further, SGHT expects the impact of coverage uncertainty to persist until more clarity on long-term coverage from Medicare Administrative Contractors (MAC) emerges.
Furthermore, coverage determinations will impact the performance of SGHT’s OMNI Surgical System technology. The company expects revenue to normalize if the MACs provide a clear stance that the OMNI procedures will remain covered for Medicare beneficiaries. Amid this dynamic, SGHT expects revenue for the full year 2023 to land in the range of $80 million and $82 million. This is a substantial scaleback from the prior outlook in the range of $89 million and $94 million.
Overall, the Street has a consensus price target of $8.58 on SGHT, alongside a Hold consensus rating.
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