Why Cutera Shares Are Diving Today
Portfolio Pulse from Nabaparna Bhattacharya
Cutera, Inc. (NASDAQ:CUTR) shares plummeted after reporting Q4 results with a wider loss per share of $(1.36) compared to analyst estimates of a loss of 94 cents. Despite beating revenue expectations with $49.5 million, the company saw a significant decline in capital equipment systems and recurring revenue sources. Non-GAAP gross profit and margin drastically decreased, affected by a non-cash expense for excess and obsolete inventory. The company forecasts 2024 annual revenue between $160 million to $170 million, slightly below the estimate of $168.26 million. CUTR shares dropped 28.2% to $1.65.

March 22, 2024 | 3:50 pm
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NEGATIVE IMPACT
Cutera's Q4 earnings report showed a wider loss than expected and a significant decrease in gross profit and margin, leading to a 28.2% drop in its stock price.
The wider-than-expected loss per share and the significant decrease in both gross profit and margin are critical factors that directly impact investor sentiment and stock price. The sharp decline in the stock price following the earnings report is a direct consequence of these negative results.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100