Please ensure Javascript is enabled for purposes of website accessibility

Why Fluidigm Stock Is Sinking Today

By Keith Speights - Feb 11, 2021 at 11:40AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company reported disappointing fourth-quarter results.

What happened

Shares of Fluidigm (FLDM -4.06%) were sinking 18.1% lower as of 11:28 a.m. EST on Thurday. The big decline came after the biotechnology tools provider announced its fourth-quarter results following the market close on Wednesday.

So what

Fluidigm reported that its revenue in the fourth quarter jumped 38% year over year to $44.6 million. This result was well below the average analysts estimate of $50.7 million. The company posted an adjusted net loss of $9.8 million, or $0.13 per share. This was worse than the consensus estimate of a loss of $0.07 per share.

Investors were likely especially concerned about Fluidigm's full-year 2021 guidance. The company expects revenue of between $140 million and $150 million. The midpoint of that range is well below the average analyst estimate of $198.3 million. 

A gloved hand holding a swab in a person's mouth

Image source: Getty Images.

Despite the top- and bottom-line misses in Q4 and the disappointing guidance, there were some positive things about Fluidigm's latest update. The company's revenue in Q4 was the highest in its history. Fluidigm has seen robust demand for its saliva-based COVID-19 tests. Its outlook for 2021, while not meeting Wall Street's hopes, still reflects solid revenue growth and an improving bottom line.

Now what

The most important wild card for the healthcare stock going forward is how long the COVID-19 pandemic lasts. Fluidigm's growth in a post-pandemic world will likely taper off. This means that the company's other areas of focus, including technologies for cancer, immunology, and immunotherapy research, will likely again become Fluidigm's top priority in the future.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Fluidigm Corporation Stock Quote
Fluidigm Corporation
$1.53 (-4.06%) $0.07

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.