What happened
Shares of 908 Devices (NASDAQ: MASS) were down 19% as of 11 a.m. ET on Monday. The steep decline came after the maker of handheld and desktop mass spec devices for chemical and biomolecular analysis announced its third-quarter results earlier in the morning.
908 Devices reported Q3 revenue of $15.8 million, up 26% year over year. This narrowly topped the consensus estimate of $15.7 million. The company posted a net loss of $6.3 million, or $0.20 per share. This loss was one penny wider than in the prior-year period. However, it wasn't as bad as the average analysts' estimate of a net loss of $0.22 per share.
With better-than-expected top and bottom lines in Q3, why is the healthcare stock falling so much today? You can blame it on 908 Devices' full-year guidance. The company now expects 2022 revenue will be between $46 million and $49 million. Its previous forecast was for full-year revenue in the range of $52 million to $55 million.
So what
908 Devices CEO and co-founder Kevin Knopp explained why the company lowered its revenue outlook in the Q3 results press release. Knopp said that the company saw customers slowing and stretching out their purchase cycles in the recent quarter and he attributed this mainly to macroeconomic headwinds.
Such broader industry issues should only be temporary. However, 908 Devices remains unprofitable. Its valuation hinges in large part on its growth prospects. When that growth is threatened, you can expect the stock to take a hit.
Now what
Knopp also noted that 908 Devices plans several new product launches in early 2023. The stock could bounce back if those new products spur stronger sales growth.
10 stocks we like better than 908 Devices Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and 908 Devices Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of November 7, 2022
Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
