HTG Molecular Drops Over 7% As 1Q Revenue Forecast Lags Estimates

Shares of HTG Molecular Diagnostics were down about 7.2% in Tuesday’s pre-market trading session after the life science company provided lower-than-expected preliminary revenue numbers for its upcoming first-quarter results. HTG Molecular is set to report 1Q results in May 2021.

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HTG Molecular (HTGM) expects to report 1Q revenues of about $1.4 million, significantly lower than analysts’ expectations of about $2.39 million. The company also expects cash, cash equivalents and short-term marketable securities of about $30.8 million at the end of March 31, 2021.

As for full-year 2021, HTG Molecular continues to expect its revenue to grow in the range of 30% to 40% year-over-year. The company also predicts the resurgence of COVID-19 to impact the first quarter and at least the first half of 2021.

The company’s CEO John Lubniewski said, “While we remain confident in the main drivers and underlying demand for our products, and still believe that full year 2021 revenue could grow 30% to 40% over 2020 levels, we believe regional and company level closures will continue to add turbulence to our revenue recovery throughout the first half of 2021.” (See HTG Molecular Diagnostics stock analysis on TipRanks)

On March 26, H.C. Wainwright analyst Yi Chen lowered the stock’s price target to $11 (93.3% upside potential) from $15 but maintained a Buy rating. The analyst remains upbeat on HTG Molecular’s revenues in 2021 despite the adverse impact of COVID-19.

Turning now to the rest of the Wall Street community, HTG Molecular Diagnostics has a Moderate Buy consensus rating based on 2 unanimous Buys. The average analyst price target of $13 implies upside potential of about 128.5% to current levels. Shares have gained about 30.8% in one year.