Accelerate Diagnostics drops after missing third-quarter revenue consensus, lowering forecast
In vitro diagnostics company Accelerate Diagnostics (AXDX) fell about 15% after reporting a revenue loss in the third quarter and lowering guidance for FY22.
Net sales was $3 million, compared to $3.1 million the previous year. The decline is attributable to the timing of capital equipment sales.
Recurring revenue continued to grow Q/Q sequentially and on comparable periods compared to the prior year.
Gross margin declined Q/Q to 26% from 32% due to manufacturing cost inflation and other factors.
The company ended the quarter with cash and investments of $55.4 million.
“Hospitals are slowly regaining their footing and seeing their patient mix improve. This has contributed to a full return to pre-pandemic levels of blood infection testing and more predictable consumable purchases for customers. What has been slower to recover are hospital staffing levels,” said Jack Phillips said during the company’s third quarter earnings call.
“Record turnover persists, resulting in high vacancy rates across the hospital, including a lack of adequate lab technicians. This continues to negatively impact the hospital’s ability to take on new projects. And therefore, our ability to close new businesses,” Phillips said. .
“We had several U.S. customers in the contract stage, which we expect to close in the fourth quarter, and are now on hold. Due to these delayed investment income opportunities, we now expect to come in just below the low of our revenue forecast of $13 million to $14 million for the year,” Phillips said.
Consensus revenue estimate stands at $14.40 million.