What happened
Shares of Cytek Biosciences (CTKB 0.68%) were down 36.3% for the week as of Friday afternoon, according to data provided by S&P Global Market Intelligence. The healthcare stock closed at $11.92 last week, then fell to a 52-week low of $7.46 on Friday. The cell-analysis solutions company's shares dropped sharply after the company reported first-quarter earnings after the markets closed on Tuesday. The stock is down more than 25% so far this year.
So what
Cytek, which joined the S&P 600 Index in April, saw increased losses in Q1. The company's quarterly revenue was reported as $37.1 million, up 6%, but the company lost $6.8 million compared to a $2.2 million loss in the same period a year ago.
Another reason why investors didn't react favorably to the earnings report was the company revised revenue guidance downward. Citing macroeconomic conditions, Cytek said it expects full-year revenue between $205 million and $220 million. While that still represents growth of 25% to 34% over 2022, it is down from earlier guidance of between $225 million to $235 million.
It also didn't help the stock that president and CEO Wenbin Jiang sold 20,000 shares of Cytek stock a day after the earnings report.
Now what
Cytek has steadily increased revenue, growing annual revenue by 200% over the past five years. It won't be surprising to see the stock bounce back next week, considering the 52-week low this week. However, the move to a loss in Q1, after net income of $3.7 million in Q4, was concerning. Investors will want to see progress toward profitability in the next quarter.