VAPO - Vapotherm stock sheds ~31% as Q2 results disappoint co cuts FY 2022 revenue guidance

Shares of micro-cap pharmaceutical company Vapotherm ( NYSE: VAPO ) sank 31.3% to $1.76 in Thursday afternoon trading, after the maker of respiratory technology reported Q2 results that missed estimates and slashed its FY 2022 revenue guidance.

If the losses hold, VAPO stock is on track to post its worst intraday performance since April 7.

VAPO after hours on Wednesday posted a wider Q2 GAAP loss per share of -$1.61 which missed estimates by $0.86 . Its Q2 revenue of $13M slumped 37% Y/Y and missed expectations by $5.35M .

“The second quarter of 2022 was a tough quarter for us due to low respiratory patient census and Customer destocking of inventory purchased during the Omicron wave in the first quarter of 2022," said VAPO CEO Joseph Army in the earnings report .

The company said its wider quarterly loss was due to a non-cash impairment charge of $18.7M related to two acquisitions.

VAPO now expects fiscal 2022 net revenue of $76M to $81M, compared to a previous forecast of $81M to $86M. The consensus revenue estimate is $77.82M.

VAPO also lowered its fiscal 2022 gross margin outlook to a range of 30% to 32% from a prior guidance of 34% to 36% due to lower revenue, production levels and inventory reserves.

Several research brokerages weighed in on VAPO's results, with both William Blair and BTIG Research downgrading their ratings to market perform and neutral, respectively, while Piper Sandler lowered its price target on the stock.

Up to Wednesday's close, VAPO stock -87.6% YTD.

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