RxSight (RXST, Financials) shares dropped 43.6% to $14.74 as of 10:28 a.m. ET on Thursday after the company cut its full-year 2025 guidance and posted lower-than-expected preliminary first-quarter revenue.

Warning! GuruFocus has detected 2 Warning Sign with RXST.

The California-based maker of light-adjustable intraocular lenses expects revenue of $37.9 million for the first quarter of 2025, representing 28% year-over-year growth but a 6% decline from the previous quarter. The figure missed the $39.6 million consensus estimate compiled by FactSet.

RxSight also lowered its full-year revenue outlook to a range of $160 million to $175 million, down from the previous range of $185 million to $197 million. The revised projection implies 14% to 25% annual growth and falls short of the $187.8 million FactSet consensus estimate.

The company reduced its operating expense forecast to between $150 million and $160 million, compared with the earlier range of $165 million to $170 million.

Chief Executive Officer Ron Kurtz said the revised forecast reflects the company's larger commercial footprint facing broader macroeconomic pressures and challenges within the premium intraocular lens market. We now must navigate headwinds affecting the overall premium intraocular lens market and broader economy that were less impactful when our commercial footprint was much smaller, Kurtz said in a statement.

Following the announcement, Bank of America downgraded RxSight to Underperform from Buy. Analyst Craig Bijou said the revised revenue guidance implies about 17% growth for the remainder of the year, below the 28% year-over-year growth expected in the first quarter. He said the stock is likely to remain under pressure until the company demonstrates multiple quarters of reaccelerating top-line growth.

Bijou also cut his price target on the stock to $22 from $36.

This article first appeared on GuruFocus.

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