News

Treace Medical Concepts Faces Challenges with Lowered Revenue Outlook

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4.9

Andrew R. Michaud

• November 10, 2023

Shares of Treace Medical Concepts took a significant hit, reaching an all-time low, following the company's announcement of a lowered full-year revenue outlook and disappointing third-quarter results.

Stock plummeted to record low

In premarket trading, the stock saw a staggering 47% decline, hitting a record low of $5.27 per share. This decline adds to the already considerable 72% year-to-date drop observed by the market at Thursday's close.

Revised revenue guidance

Treace Medical Concepts, a medical technology company, revised its revenue expectations for the full year. It now anticipates generating between $182 million and $186 million, a reduction from its previous forecast of $191 million to $197 million.

Disappointing third-quarter results

The company reported a loss of $17.5 million, or 28 cents per share, for the third quarter. This represents an increase in loss compared to the same quarter last year when Treace recorded a loss of $12.1 million, or 22 cents per share.

Analysts' expectations missed

Analysts surveyed by FactSet were anticipating a more optimistic outcome with a predicted loss of 26 cents per share. However, the actual results fell short of these expectations.

Revenue growth remains steady

Treace Medical Concepts experienced a 23% increase in revenue, totaling $40.8 million for the third quarter. Despite this growth, it fell behind the projected revenue of $41.6 million according to FactSet analysts.