2023-03-15 13:31:08 ET
Infusion pump maker InfuSystem Holdings ( NYSE: INFU ) lost ~17% on Wednesday to reach the lowest level since October after reporting lower-than-expected financials for Q4 2023 and setting its revenue outlook below Street forecasts.
Compared to $30.8M in the consensus, the Michigan-based company reported $28.8M of net revenue for the quarter with ~9% YoY growth, as its ITS segment added ~$17.6M to the topline with ~5% YoY growth.
Meanwhile, INFU’s bottom line contracted ~72% YoY to $107.0K as gross margin slipped to ~56% from ~58% in the prior year period.
While revenue for the full year increased ~7% YoY to $109.9M, the net income dropped to $18K from $1.4M in 2021, and the gross margin slipped 1.9% to 56.9%, as the adj. EBITDA also fell ~14% YoY to $20.7M.
“We had a highly productive year in 2022 with solid performance achieving record revenue for the fourth consecutive year of $110 million and developing key strategic partnerships laying strong foundations for the future,” Chief Executive Richard DiIorio said.
While Wall Street estimated InfuSystem ( INFU ) to report $122.6M in net revenue for 2023, the management set its outlook at $118M – $121M of net revenue, more than $22M of adj. EBITDA with over 19% of adj. EBITDA margin for this year.
Seeking Alpha contributor Zach Bristow reaffirmed his Hold rating on the stock in December, citing concerns about its valuation.
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InfuSystem sheds 17% to hit five-month low as outlook disappoints