NanoString Technologies' Q3 Fall Short Street View; Cuts FY21 Guidance

  • NanoString Technologies Inc NSTG reported Q3 sales of $37.15 million, +17% Y/Y, mainly driven by instrument sales, demand for consumables, and services.
  • Q3 sales fell slightly short of analysts' consensus estimate of $37.79 million. 
  • NanoString's Q3 product and service revenues grew 23% to $36.9 million.
  • Instrument revenue rose 13% to $14.5 million driven by GeoMx Digital Spatial Profiler (DSP) and nCounter Analysis System sales, which grew 14% and 11% Y/Y, respectively.
  • Consumables revenues grew 32% to $18 million, with GeoMX DSP consumables more than quadrupling and nCounter consumables increasing by 10%.
  • In a conference call with investors, Doug Farrell, vice president of investor relations, attributed the slower-than-expected nCounter consumables sales to the lingering effects of the pandemic. 
  • NanoString expects these sales to remain below average before recovering in 2022.
  • Overall, the Company said that GeoMx instrument orders grew by 40%, with the installed base rising to approximately 225 systems.
  • Total nCounter installed base rose to approximately 1,030 systems, compared to 915 systems in Q3 FY20 and 1,015 systems at the end of Q2 FY21.
  • NanoString's Q3 EPS loss of $(0.69) was wider than expected of $(0.54).
  • Guidance: The Company lowered its full-year product and service revenue guidance to $140 million - $144 million from a previous range of $143 million - $147 million.
  • "We now expect FY21 GeoMx revenue will be $49 million - $50 million, driven by instrument order growth of possibly 50% for the full year at the upper end of our annual guidance range," NanoString CFO Tom Bailey said during the call.
  • The Company estimates nCounter revenue of approximately $91 - $94 million compared to previous guidance of $143 million - $147 million.
  • Price Action: NSTG shares closed at $46.67 on Tuesday.
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