Cutera Stock Drops 23% After 'Disappointing' 2Q

By Emon Reiser

Shares of Cutera slid to a three-year low on Wednesday as the company wrestles with investors’ response to its leadership shakeups and lackluster financial results.

The stock reached $12.70, the lowest since July 2020 according to FactSet, and was recently down nearly 23% to $13.38. Shares have fallen nearly 70% year to date.

The company on Tuesday reported second-quarter results that former interim CEO Sheila Hopkins described as “frankly, disappointing,” with revenues down 5% to $61.2 million year over year.

Cutera’s selling prices declined in the first half of the year, and the company had an overall decline in volume as well. Taylor Harris, installed as CEO in July, said the trends reflect multiple pressures on the company.

“One is a macroeconomic pressure and the second is more company-specific,” he said on a call with investors Tuesday after the market close. “On the macro front, the financing environment is more challenging, and we’re seeing that reflected in our conversations with customers.”

Harris went on to say that the company-specific factor has to do with service and reliability challenges.

“We need to do a better job of supporting our customers and delivering the quality and the timeliness of services,” he said. “When machines go down, getting them back up online quickly…That is something we can control and we’re focusing a lot of attention there.”

Write to Emon Reiser at [email protected]

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