Outset Medical Stock Tumbles After Shipment Pause Of TabloCart - Here's Why
Portfolio Pulse from Vandana Singh
Outset Medical Inc (NASDAQ:OM) has paused the shipment of TabloCart with Prefiltration, pending the FDA's clearance of a 510(k) the company plans to submit later this month. Despite this, Q2 revenue increased 43.8% to $36.0 million, beating the consensus of $35.18 million. The company reiterated its 2023 revenue guidance range of $144 million-$150 million, but now expects to be at the low end due to the shipment pause. OM shares are down 9.76% at $17.47.
August 04, 2023 | 2:05 pm
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Outset Medical's decision to pause TabloCart shipments pending FDA clearance has led to a 9.76% drop in its stock price. Despite this, the company reported a 43.8% increase in Q2 revenue and reiterated its 2023 revenue guidance.
The decision to pause shipments of a product can lead to a decrease in revenue and profitability, which can negatively impact a company's stock price. This is reflected in the 9.76% drop in Outset Medical's stock price. However, the company's strong Q2 earnings and the reiteration of its 2023 revenue guidance may help to mitigate some of this negative impact.
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