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
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
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.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100