Shares of Sight Sciences took a nosedive in premarket trading on Tuesday following a disheartening update on its revenue guidance. The eyecare-technology company, based in Menlo Park, California, announced that it expects third-quarter revenue in the range of $19 million to $20 million. This falls short of the $23.7 million forecasted by analysts polled by FactSet.
Sight Sciences attributed this shortfall to a decrease in new account additions and year-over-year utilization. The company explained that glaucoma customers are experiencing temporary uncertainty due to proposed local coverage determinations. These factors have resulted in lower-than-expected revenue for the third quarter.
In addition to revising its quarterly guidance, Sight Sciences also adjusted its full-year revenue forecast. The previous projection of $89 million to $94 million has been reduced to a range of $80 million to $82 million. Analysts on Wall Street had anticipated full-year revenue of approximately $92.1 million.
Analysts at Stifel expressed surprise and disappointment regarding the guidance provided by Sight Sciences. They noted that the effects of the proposed local coverage determinations have begun to impact the company earlier than anticipated.
As a result of these announcements, shares in Sight Sciences experienced a substantial decline. After closing at $6.51 on Monday, the stock price fell by 34% to $4.29 during premarket trading on Tuesday.
