Investors in Zynex (NASDAQ:ZYXI) are feeling the heat as the medical device maker’s stock takes a hit following the release of its second-quarter 2024 earnings report.
The company reported diluted earnings per share of 4 cents, falling short of Wall Street’s estimate of 8 cents and down from 9 cents in the same period last year. Additionally, Zynex’s revenue came in at $49.9 million, missing analysts’ estimate of $52.09 million and down from $50 million in Q2 2023.
Zynex’s President and CEO, Thomas Sandgaard, attributed the revenue impact to a change in product mix, with sales of private labeled pain management products exceeding expectations. However, these sales are one-time and lack the recurring revenue model found in the company’s electrotherapy products.
ZYXI Stock Plunges on Future Outlook
Looking ahead, Zynex’s updated guidance includes Q3 revenue of at least $50 million and 2024 revenue of at least $200 million. Despite this, both figures fall short of Wall Street’s expectations of $60.23 million for Q3 and $226.95 million for 2024.
As a result, ZYXI stock has dropped by 23.9% as of Friday morning.
Analysis and Conclusion
Investors should take note of Zynex’s disappointing earnings report and revised guidance, which have led to a significant decline in the company’s stock price. The missed revenue estimates and lack of recurring revenue from certain product sales are concerning factors that may impact the stock’s performance in the future.
It is important for investors to stay informed about company earnings reports and future guidance to make informed decisions about their investment portfolios. Keeping a close eye on key financial metrics and understanding the implications of such news can help investors navigate the stock market more effectively and protect their financial interests.
Overall, Zynex’s stock performance serves as a reminder of the volatility of the market and the importance of thorough research and analysis before making investment decisions.