Shares of Outset Medical sank after the company reported lower-than-expected preliminary third-quarter revenue and warned of lower capital spending in the fourth quarter.
The stock was down 34% to $4.45 in after-hours trading, after falling 11% at Thursday’s close. Shares are down 74% this year.
The San Jose, Calif.-based medical technology company said its revenue rose 9% to $30.4 million in the third quarter, according to preliminary results, missing the $36 million forecast by analysts, according to FactSet.
Outset said it expects full-year revenue of $130 million, compared with prior guidance of $140 million to $150 million. Analysts polled by FactSet expected revenue of $144.6 million.
Chief Executive Leslie Trigg said the company saw a larger-than-expected impact in the field from a recent Food and Drug Administration warning letter. The company is also expecting headwinds from more cautious capital spending in the fourth quarter.
Outset said it didn’t see any deals fall out of its pipeline.