2023-08-10 10:54:52 ET
Shares of Sonedo Inc ( NYSE: SONX ) fell more than 7% in morning trade on Thursday after the medical technology company reported second quarter results that missed analysts’ estimates and provided a dour guidance.
The company said it expects total revenue for the current quarter between $10.2 million and $10.6 million, compared to Street’s estimate of $11.28 million. Its annual revenue guidance of $44 million to $46 million is also below analysts’ estimates.
Brokerage Piper Sandler downgraded rating on stock to “neutral” and lowered price target to $1.
“The updated guide could be conservatism in light of uncertainty around future macro developments, but we're concerned the near-term revenue challenge could run deeper,” said Piper analyst Jason Bednar.
Bednar added that considering the cash burn at Sonedo, the company may need a capital raise at some point in the next 12-24 months.
Sonedo’s second quarter revenue increased nearly 5% to $11 million, primarily driven by a fall in sales for GentleWave consoles.
Net loss stood at $17.7 million, or 19 cents per share, for the second quarter, compared to $15.1 million, or 57 cents, a year earlier.
Gross margin for the quarter was 10%, compared to 24% last year.
Wall Street rated the stock as “buy”, while Seeking Alpha’s Quant Rating considers it a “hold”. Sonedo declined nearly 48% so far this year.
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Sonedo down after missing Q2 estimates; Piper Sandler downgrades to 'neutral'