Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
Monday, analysts at H.C. Wainwright adjusted their outlook on Rockwell Medical Technologies (NASDAQ:RMTI), lowering the price target to $3.00 from the previous $7.00 while maintaining a Buy rating on the stock. The adjustment comes as the stock has declined significantly, with a 24% drop in the past week and a 64% decline over the last six months. According to InvestingPro data, the stock is currently trading near its 52-week low of $1.26. This decision follows Rockwell Medical’s announcement of its fourth quarter and full-year 2024 financial results. The company slightly exceeded revenue expectations with $101.5 million compared to the forecast of $99.4 million, achieving a notable revenue growth of 21.4% year-over-year. InvestingPro analysis reveals the company maintains a GOOD overall Financial Health score, with particularly strong metrics in growth and relative value.
However, Rockwell Medical provided a 2025 revenue guidance range of $65-70 million, a substantial decrease from the $87.6 million previously estimated by the analysts. The revision is primarily due to Rockwell’s largest customer transitioning its volume to an alternative supplier by mid-2025, which is expected to result in a loss of approximately $34 million in revenue compared to 2024.
In response to the anticipated revenue decline, Rockwell Medical is taking steps to reduce expenses. Despite the setback, the company is still engaged in discussions with the customer regarding a potential contract extension or future volume commitments. Management remains committed to working closely with the customer to support its clinics and patients.
H.C. Wainwright reaffirmed their Buy rating on Rockwell Medical but revised the 12-month price target downward to $3 to reflect the anticipated impact on the company’s near- and medium-term revenue growth due to the loss of business from its largest customer.
In other recent news, Rockwell Medical Inc. reported its fourth-quarter 2024 earnings, surpassing expectations with an earnings per share (EPS) of $0.04, compared to a forecast of $0. Despite this positive earnings surprise, the company faces challenges due to the transition of its largest customer, which is expected to impact future revenue by $34 million. Rockwell Medical’s full-year 2024 net sales increased by 21% to $101.5 million, with a gross margin improvement from 10% in 2023 to 17% in 2024. The company also reported a significantly reduced net loss of $500,000, an improvement of nearly $8 million from the prior year.
In terms of strategic moves, Rockwell Medical continues to focus on expanding its international presence and launching new products. The company projects 2025 net sales between $65 million and $70 million, with a gross margin of 16-18%. Rockwell Medical’s stock experienced a 15.34% decline in premarket trading, reflecting investor concerns over future revenue losses. Additionally, the company is in discussions with its largest customer about potential contract extensions, aiming to mitigate the impact of the transition. Despite these challenges, Rockwell Medical remains optimistic about growth opportunities in international markets and new product offerings.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.