Avita shares slump on downgraded revenue forecast
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More news: Shares in Avita Medical have slumped more than 16% to $3.65 in early trading on the ASX after it said it would miss full-year revenue guidance after slower-than-expected growth in the fourth quarter.
Revenue for the medical technology company's fourth quarter rose 30% to US$18.4 million ($29.5 million), but will fall short of the forecast range of US$22.3 million to US$24.3 million, it said.
Avita Medical misses guidance after slower than expected Q4
The news: Medical technology company Avita is set to miss its full-year revenue guidance after reporting slower-than-expected growth in the fourth quarter.
The numbers: The company said revenue in the three months to December 2024 rose 30% to USD18.4 million ($29.5 million), but will fall short of the forecast range of USD22.3 million to USD24.3 million.
As a result, full-year revenue is set to grow 29% to USD64.3 million, but below guidance of USD68 million to USD70 million.
The context: The Nasdaq and ASX-listed firm attributed the slower growth to a number of factors led by slower-than-expected year-end purchasing by hospitals. However, it expects normal purchasing activity to resume in the first quarter as deferred purchases roll over.
The company expects to scale up sales of its skin repair products in the new year, bolstered by the launch of its Recell Go and Cohealyx products, and outlined FY25 guidance of USD100 million to USD106 million, an increase of 55% to 60% over 2024. It will outline full-year results on 13 February.
The source: ASX announcement
