Beyond Air misses earnings, revenue estimates by wide margins

Beyond Air on Tuesday reported adjusted earnings per share of $0.05 for the quarter ended June 30, missing Wall Street estimates of $0.15 by $0.10. Revenue totaled $12.3 million, falling short of the $13.5 million expected by analysts.

The company attributed the shortfall to slower-than-anticipated adoption of its LungFit PH2N2 device, which is used for high-flow oxygen therapy. Beyond Air said the device’s penetration in target markets remained below projections, particularly in the U.S., where demand has lagged expectations.

Gross margin declined to 68% from 72% in the same period last year, reflecting higher production costs and lower utilization of manufacturing capacity. Operating expenses rose 15% year-over-year to $10.1 million, driven by increased research and development spending.

Beyond Air maintained its full-year guidance, projecting revenue of $50 million to $55 million and adjusted earnings per share of $0.20 to $0.30. The company emphasized progress in regulatory approvals for expanded indications of its device, which it said could support future growth.

Shares of Beyond Air fell 8% in extended trading following the release, after closing at $2.45 in regular-session trading. The stock has declined 22% over the past 12 months.

Analysts at William Blair maintained an Outperform rating on the stock but trimmed their price target to $3.50 from $4.00, citing the near-term execution challenges.