On Wednesday, Spectral AI (NASDAQ:MDAI) experienced a revision in its stock outlook as BTIG adjusted its price target on the company's shares. The price target was lowered to $3.00 from the previous $4.00, while the firm retained a Buy rating on the stock. This change follows the company's first-quarter financial results for 2024.
Spectral AI reported quarterly revenue of $6.3 million, which fell short of BTIG's estimates of $7.0 million. However, the company's loss per share (LPS) of $(0.19) outperformed the analyst's expectation of $(0.26).
The slower-than-anticipated enrollment in Spectral AI's pivotal Burn trial in the United States, attributed to lower incidences of burns during the quarter, has led to a slight delay in R&D revenues from the Biomedical Advanced Research and Development Authority (BARDA).
Despite the adjustment in revenue expectations, Spectral AI forecasts full-year 2024 R&D revenue to be approximately $28 million, marking a 55% year-over-year increase. The company anticipates that revenue will be more heavily weighted towards the second half of the year as trial enrollment is expected to accelerate.
In the United Kingdom, Spectral AI's DeepView System is making headway, with three systems already placed in hospitals. The company plans to install three additional systems in the summer, paving the way for commercial revenue generation in the second half of 2024. These projections are not included in BTIG's current estimates.
While the timeline for the Diabetic Foot Ulcer (DFU) submission in the United States has been pushed back slightly, potentially into early fiscal year 2025, Spectral AI is on course to start producing commercial revenue in fiscal year 2026 in both the US and UK markets.
InvestingPro Insights
Following the recent adjustments in Spectral AI's stock outlook by BTIG, it's important to consider some key financial metrics and expert insights from InvestingPro. With a market capitalization of $30.07 million and a negative P/E ratio of -1.17, reflecting the company's current lack of profitability, investors are paying close attention to Spectral AI's financial health and future prospects. The company's revenue for the last twelve months as of Q4 2023 stood at $18.06 million, despite a decrease of 28.82% in revenue growth during the same period.
Two noteworthy InvestingPro Tips for Spectral AI are that the stock is currently trading near its 52-week low and that the RSI suggests it is in oversold territory. These insights might be particularly relevant for investors considering entry points or assessing market sentiment. Moreover, the company's short-term obligations exceed its liquid assets, which could be a point of concern for those analyzing the company's immediate financial stability.
Investors interested in a deeper dive into Spectral AI's financials and additional insights can find more InvestingPro Tips by visiting https://www.investing.com/pro/MDAI. There are 6 more tips available that could provide further guidance. For those looking to subscribe to InvestingPro for a comprehensive analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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