What happened
Shares of 908 Devices (MASS 3.50%) were down 19% as of 11 a.m. ET on Monday. The steep decline came after the maker of handheld and desktop mass spec devices for chemical and biomolecular analysis announced its third-quarter results earlier in the morning.
908 Devices reported Q3 revenue of $15.8 million, up 26% year over year. This narrowly topped the consensus estimate of $15.7 million. The company posted a net loss of $6.3 million, or $0.20 per share. This loss was one penny wider than in the prior-year period. However, it wasn't as bad as the average analysts' estimate of a net loss of $0.22 per share.
With better-than-expected top and bottom lines in Q3, why is the healthcare stock falling so much today? You can blame it on 908 Devices' full-year guidance. The company now expects 2022 revenue will be between $46 million and $49 million. Its previous forecast was for full-year revenue in the range of $52 million to $55 million.
NASDAQ: MASS
Key Data Points
So what
908 Devices CEO and co-founder Kevin Knopp explained why the company lowered its revenue outlook in the Q3 results press release. Knopp said that the company saw customers slowing and stretching out their purchase cycles in the recent quarter and he attributed this mainly to macroeconomic headwinds.
Such broader industry issues should only be temporary. However, 908 Devices remains unprofitable. Its valuation hinges in large part on its growth prospects. When that growth is threatened, you can expect the stock to take a hit.
Now what
Knopp also noted that 908 Devices plans several new product launches in early 2023. The stock could bounce back if those new products spur stronger sales growth.
