AVITA Medical's shares sink 19% after another forecast cut

AVITA Medical

08/01/2025 03:10

By Nikita Maria Jino
       Jan 8 (Reuters) - AVITA Medical's  AVH.AX 
Australia-listed shares sank nearly 19% on Wednesday, set for
their worst day in 15 months, after the regenerative medicine
firm cut its forecast for the fourth time in five quarters and
pushed out its profitability target.
    The U.S.-based company estimated its commercial revenue was
about $64.3 million in fiscal 2024, lower than its forecast of
$68 million to $70 million, due to slower-than-expected
purchases from hospitals in the last quarter.
    "While this type of behavior is common at year-end, the
extent was more pronounced than we had anticipated," the company
said in a statement released after the end of U.S. trading
hours.
    AVITA's shares tumbled 18.8% to a two-month low of A$3.53,
while the broader S&P/ASX 200 healthcare index  .AXHJ  was 0.7%
higher. Its U.S.-listed shares  RCEL.O  slid 11.5% in extended
trading hours.
    The company said it now expects to be profitable in the
fourth quarter, not the third, of fiscal 2025. It said it
expects hospital purchases to return to normal in this quarter
and forecast full-year revenue of $100 million to $106 million.
    "While we think investors had limited expectations on GAAP
profitability, we view the fiscal 2025 guidance as simply too
aggressive," analysts at brokerage BTIG said in a note.
    With a limited sales trajectory, "we would like to see AVITA
take a more conservative approach, given its guidance history."
    California-based AVITA is scheduled to report full-year
results on Feb. 13.

 (Reporting by Nikita Maria Jino and Aaditya Govind Rao in
Bengaluru; Editing by Savio D'Souza)
 ((Nikita.Jino@thomsonreuters.com;))