Neuronetics Reports Increased Losses Despite Revenue Growth

Neuronetics experiences a significant quarterly loss of -$12.2 million, which is an increase from last year. Revenue grew 10.8% to $22.5 million, but the company's EPS of -$0.33 missed analyst expectations.

Date: 04-03-2025

AI Rating: 4

The report details Neuronetics, Inc. (STIM) facing an increased loss in the fourth quarter, which might negatively affect stock prices. The company's loss was -$12.2 million, representing an increase compared to a loss of -$5.4 million in the same quarter last year. This indicates a worsening financial situation, causing concern among investors.

Earnings Per Share (EPS): The EPS for the quarter was reported at -$0.33, which not only shows a deeper loss compared to -$0.19 per share last year, but also missed analyst expectations of -$0.24 per share. Such underperformance may lead to negative investor sentiment and potentially drive stock prices lower.

Revenue Growth: On a positive note, Neuronetics did report a 10.8% increase in revenue, amounting to $22.5 million, compared to $20.3 million last year. This growth indicates an expanding business segment, but the increasing losses could overshadow this positive aspect.

Guidance: The guidance for the next quarter shows anticipated revenue between $28 million and $30 million. While this is a good indication of expected growth, the prior quarter's losses may still weigh heavily on investor perception.

Stocks: STIM