Shares of Kestra Medical Technologies Inc (KMTS) plummeted 6.05% in after-hours trading on Tuesday following the release of the company's fourth-quarter earnings report. The medical device maker reported a larger-than-anticipated loss, disappointing investors despite beating revenue expectations.
Kestra reported a quarterly adjusted loss of $2.21 per share for the quarter ended April 30, significantly wider than the mean analyst expectation of a $0.52 per share loss. This represents a substantial miss, with the actual loss more than four times the projected figure. The company's revenue, however, came in at $17.23 million, surpassing the analyst consensus of $15.75 million.
Despite the revenue beat, the market's focus appears to be on the bottom line. The wider loss suggests that Kestra is facing challenges in controlling costs as it scales its operations. The company did report some positive metrics, including a 71% year-over-year increase in revenue and an improvement in gross margin to 44.3% from 13.9% in the prior year period. However, these positives were overshadowed by the significant earnings miss.
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