This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXMPEB280W7_M.jpg
The company expects its Q3 revenue to be approximately $1.5 million, a 60% decrease from the same period last year. This downturn is largely attributed to a $1 million reduction in funds from its partnership with the Biomedical Advanced Research and Development Authority (BARDA). It’s worth noting that, according to InvestingPro, the company’s revenue has been declining at an accelerating rate, which is a concerning trend for investors.
Earnings from the firm’s sepsis test panel have fallen by 31% to $1.1 million, primarily due to backorders. This is in line with InvestingPro Tips, which indicates that the company has been quickly burning through cash and is operating with a poor return on assets.
Looking ahead, T2 Biosystems forecasts fourth-quarter sepsis-related product revenue at $2.4 million, indicating sequential growth. However, the company anticipates an annual drop of 10% to $7.5 million due to persistent backorders. This is consistent with InvestingPro Tips where analysts anticipate a sales decline for the company in the current year.
In response to these challenges, CEO John Sperzel confirmed that the company is taking aggressive steps to address the backlog and strengthen its financial position. These measures include capital raising and debt reduction initiatives. This approach is understandable considering the company’s short-term obligations exceed its liquid assets, as per InvestingPro Tips.
T2 Biosystems will disclose its complete third-quarter results in November, providing further insight into its performance and future direction. Investors will be particularly interested in these results given the company’s recent struggles and the fact that, according to InvestingPro, the stock has taken a significant hit over the past week, month, and year.
For more in-depth analysis and tips like these, consider checking out InvestingPro. They offer a wealth of information, including additional tips on T2 Biosystems and other companies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
