The Unfortunate PlungeCUTR shares are witnessing a downward trend in trading this Friday.
Following an alarming downturn observed yesterday, when Cutera, Inc. released its fourth-quarter results, many investors find themselves grappling with shares. The company reported adjusted earnings per share of $(1.36), a staggering shortfall compared to the analyst consensus estimate of a loss of 94 cents.
Despite a consolidated revenue for the fourth quarter of 2023, amounting to $49.5 million (exceeding the street’s expectations pegged at $47.47 million), a closer look reveals concerning trends. Quarterly revenue from capital equipment systems endured a 32% decrease, while recurring revenue sources faced a 16% decline. Notably, AviClear revenue hit $3.9 million in the final quarter of 2023.
Non-GAAP gross profit appears starkly diminished, plummeting to $9.9 million in comparison to the $40.0 million figures from the corresponding period the year before. This alarming slip dragged the non-GAAP gross margin to 20%, in stark contrast to the 59.4% stronghold maintained a year back.
The downward tumble in margins is undeniably linked to a non-cash expense pertaining to excess and obsolete inventory, a hit that Cutera was certainly not prepared for.
Looking at the company’s coffers, cash and marketable securities stood at $143.6 million as of December 31, 2023, offering a sliver of solace amidst the prevailing financial storm.
The company’s outlook for 2024 paints a cautious picture, with Cutera expecting annual revenue to fall within the bracket of $160 million to $170 million. However, this forecast slightly misses the mark against current estimates resting at $168.26 million.
Market Response: CUTR shares are encountering a steep decline of 28.2%, currently hovering at $1.65 during the latest market checks conducted this Friday.
