By Sam Boughedda
Investing.com -- Vapotherm Inc (NYSE:VAPO) stock tumbled 37% on Thursday after the New Hampshire-based company withdrew its guidance for the year.
The company, which sells breathing equipment for health care providers, said it withdrew its financial predictions for the year due to lower as it initially believed there would be two COVID-19 surges in 2022 which would boost its revenue. However, it now acknowledges the "diminishing virulence of COVID-19."
This resulted in less need for breathing apparatus, which has also been helped by a reduction of seasonal hospitalization patterns related to flu and RSV in the first quarter.
“Despite the near-term uncertainty, we remain very enthusiastic about the long-term prospects of this business," said Joe Army, president and CEO of Vapotherm.
Vapotherm shares fell 23% after-hours Wednesday, and Thursday's session has added to that decline.
The company said it expects first-quarter revenue to be in the range of $20.5 million to $21.5 million, compared with $32.3 million for the first quarter of 2021.