Fermi America shares fall on weak quarterly results
The biotech firm's revenue and profit missed estimates, sending shares down 8% in early trading.
Shares of Fermi America Inc. fell sharply on Tuesday after the biotechnology company reported quarterly results that missed analyst expectations.
The company posted a net loss of $12.4 million for the three months ended June 30, compared with a profit of $8.7 million in the same period last year. Revenue declined 15% to $42.3 million, below the $48.1 million consensus estimate compiled by Refinitiv.
Fermi America attributed the shortfall to lower product sales and higher research and development costs. Chief Executive Officer Daniel Carter noted that supply chain disruptions had delayed shipments of its flagship diagnostic tool, a key revenue driver.
The stock, which had gained 12% in the prior session, dropped 8% to $14.25 in premarket trading. Analysts at Jefferies maintained a hold rating but trimmed their price target to $16 from $18, citing near-term headwinds.
Fermi America, based in Boston, has been expanding its portfolio of medical diagnostics but faces intensifying competition in the sector. The company’s next earnings report is scheduled for October 25.
The decline follows broader weakness in biotech stocks, with the S&P 500 Biotechnology Index down 2% year-to-date as investors remain cautious amid rising interest rates and regulatory scrutiny.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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