US stock futures dip as Nvidia earnings spark little cheer
On Tuesday, Jefferies made adjustments to its financial outlook for Hyperfine Inc. (NASDAQ:HYPR), raising the price target to $1.20 from the previous $1.00 while maintaining a Hold rating on the stock. The stock, currently trading at $1.28, has shown remarkable momentum with a 42.9% return over the past week. According to InvestingPro analysis, the company maintains strong liquidity with a healthy current ratio of 6.44. This decision follows Hyperfine’s fourth-quarter earnings report, which revealed revenues of $2.3 million, representing a 14% year-over-year decline and falling short of the consensus estimate of $3.3 million. Despite the quarterly decline, InvestingPro data shows the company achieved a 35.67% revenue growth over the last twelve months, with a solid gross profit margin of 46.01%. Subscribers can access 8 additional key insights about HYPR’s financial health and growth prospects.
Hyperfine’s fourth-quarter performance included the sale of nine commercial systems, which is an increase of two systems compared to the same period last year. However, the company faced challenges with longer deal timing and lower average selling prices, particularly for units sold outside the United States. Despite these hurdles, the initial revenue guidance for 2025 is set between $15.5 million and $16.8 million, indicating a growth rate of 20% to 30%, albeit below the consensus projection of $17 million.
The company’s management provided a breakdown of the expected revenue, with the first half of 2025 estimated to bring in $6 million, a decrease of 13% from the previous period, while anticipating a significant ramp in the second half, projecting revenues between $9.5 million and $10.8 million, which would represent an increase of 59% to 80%.
Hyperfine’s cash burn rate is forecasted to be between $25 million and $27 million. However, the management team is confident that the company has sufficient financial runway to continue operations well into the second half of 2026. The reaffirmed Hold rating by Jefferies reflects a cautious but steady outlook on Hyperfine’s stock, as the company navigates its financial trajectory in the coming years. While InvestingPro analysis indicates the company is quickly burning through cash, it maintains more cash than debt on its balance sheet, providing some financial stability. Get detailed insights into HYPR’s financial health with InvestingPro’s comprehensive research report, part of our coverage of over 1,400 US stocks.
In other recent news, Hyperfine Inc. reported mixed financial results for the fourth quarter and full year of 2024. The company met its earnings per share forecast of -$0.14, but its revenue of $2.3 million fell short of the expected $3.3 million. Despite this, Hyperfine achieved a 24% increase in full-year gross profit and expanded its gross margin by 300 basis points. The company also raised $6 million to extend its cash runway through the end of 2026. Hyperfine plans to launch new software in mid-2025, which aims to improve image quality and expand market reach. Additionally, the company has replaced half of its U.S. sales team and completed a restructuring to reduce costs. Looking ahead, Hyperfine anticipates revenue growth of 20-30% in 2025, with first-half revenue expected to reach $6 million. These developments come as Hyperfine continues to navigate challenges and opportunities in the competitive market for portable MRI systems.
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