Monday, May 27, 2024
HomeMedicalAugmedix stock crashes after guidance cut (NASDAQ:AUGX)

Augmedix stock crashes after guidance cut (NASDAQ:AUGX)

Augmedix (NASDAQ:AUGX) shares plummeted on Tuesday after the medical documentation company slashed its revenue outlook with its Q1 2024 financials, leading to a prompt downgrade from Evercore ISI.
While San Francisco, California-based HealthTech beat the consensus with its Q1 revenue late Monday, its full-year outlook, lowered to $52M-$55M from $60M-$62M, fell short of the Street forecasts.
Evercore ISI’s Elizabeth Anderson downgraded the stock to In-Line from Outperform, and cut her price target to $1.50 from $5.00 per share, attributing her decision to in-line financials and disappointing guidance.
“We are concerned about the revenue visibility and trajectory going forward and see management as needing to scale back some of its planned OpEx investments given a slower top-line trajectory,” Anderson wrote.
The analyst argued that AUGX’s Q1 update indicated the realization of many of the risks Evercore had flagged, including a delay in a program under which HCA Healthcare (HCA) plans to deploy the company’s key product, Augmedix Go, across its emergency departments.

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