New York -Sight Sciences (NASDAQ: SGHT), the manufacturer of a glaucoma surgery device, witnessed a sharp decline in its stock price, plummeting by over 30%, after revising its full-year revenue outlook due to uncertainties surrounding Medicare coverage for its products.
The company attributed the reduced demand to this uncertainty and now anticipates its full-year revenue to range between $80 million and $82 million, down from its previous projection of $89 million to $94 million. This adjustment fell below analysts’ expectations, which had estimated revenue at $92.1 million.
Furthermore, the company’s third-quarter revenue is forecasted to be in the range of $19 million to $20 million, in contrast to the consensus estimate of $23.7 million.
Sight Sciences intends to unveil detailed third-quarter results in early November, along with the announcement of Matt Link as its new Chief Commercial Officer.
Paul Badawi, Founder and Chief Executive Officer of Sight Sciences, commented on the situation, saying, “We typically see a strong second quarter followed by a slower start to the third quarter given traditional seasonality patterns. While we had a strong second quarter prior to the LCD proposals, we have faced a lower cadence of new account additions and relatively flat utilization, and we have not experienced the expected increase in commercial activity thus far in August and early September.”
Badawi also noted the importance of OMNI procedures in glaucoma treatment and expressed optimism that revenue would normalize and resume growth if Medicare beneficiaries’ coverage in affected regions is clarified by the Medicare Administrative Contractors (MACs).
In response to the downward revision, William Blair analysts downgraded Sight Sciences shares from “Outperform” to “Market Perform,” expressing disappointment in the lower guidance for this quarter. They emphasized the need for clarity regarding the proposed LCD and its potential impact on demand.
Piper Sandler analysts also adjusted their rating on the stock in response to the company’s revised outlook.
