Cepheid Plunges After Previewing Larger-than-expected Loss

Cepheid shares dropped in the extended session Tuesday after the medical-device company provided preliminary earnings results below projections. The company said it expects to report a loss of 32 cents a share on revenue of $126.5 million, with an adjusted loss of 13 cents a share. Cepheid had previously forecast a per-share loss between 28 cents and 30 cents, and analysts polled by Factset expected the company to report adjusted losses of 5 cents a share. Cepheid also dropped its fourth-quarter and full-year revenue forecasts, and said it would update earnings projections when it fully reports earnings on Oct. 20. The company said lower-than-expected gross margin caused the shortfall, and Chief Executive John Bishop said the company sold more lower-margin devices than expected. Cepheid shares fell more than 16% in late trading after closing with a 8.6% decline at $39.61.