NxStage Medical (NSDQ:NXTM) may have boosted third-quarter revenues 24 percent, pared losses by 35 percent and raised its full-year sales guidance, but Wall Street remained unimpressed as investors sent NXTM shares down nearly 12 percent this morning.
The Lawrence, Mass.-based home hemodialysis system maker reported losses of $5.3 million, or 10 cents per share, on record sales of $55.9 million for the three months ended Sept. 30.
That compares with losses of $8.2 million, or 17 cents per share, on sales of $45.0 million during the same period last year.
“Not only was this a record quarter with respect to revenues, but also one where we made meaningful progress in advancing metrics across our business,” CEO Jeffrey Burbank said in prepared remarks. “These results are strong validation of our business model and we see significant opportunities across our business to advance our long term growth strategy. We are particularly pleased with the growing strength of clinical data showing that patients benefit from more frequent hemodialysis and that they live longer and healthier lives.”
Analysts on The Street were looking for losses of 10 cents per share, but investors still sent NXTM shares down from a $21.43 open to $19.77 as of about 11:30 today – despite a rosier top-line outlook from the company for the rest of the year.
NxStage said it now expects full-year sales of between $216 million and $217 million, up from its prior forecast of $210 million to $215 million. Net losses are now expected to be between $19 million and $23 million, or 36 cents to 43 cents per share.