Biolase (NASDAQ:BIOL) stock is taking a beating on Friday following the release of its earnings report for the first quarter of 2023.
The bad news for investors in BIOL stock is the company’s earnings per share of -18 cents for the period. That’s worse than Wall Street’s estimate of -10 cents for the quarter. However, it’s better than the -81 cents per share reported in the first quarter of 2022.
On the flip side of this is the company’s Q1 revenue of $10.47 million. That’s above analysts’ revenue estimate of $10.18 million for the quarter. Additionally, it represents a 3% increase from the $10.2 million reported in the same period of the year prior.
Biolase also explains why its earnings were hit during the quarter:
“Gross margin for the quarter ended March 31, 2023 was 32% compared to 47% for the quarter ended March 31, 2022. The decrease in gross profit is primarily due to the impact of supply chain issues we have encountered requiring us to change to new suppliers, and the effect of an increase in the percentage of our revenue generated outside the U.S., where margins are lower than our U.S. business.”
Biolase 2023 Guidance
According to the company, it’s expecting revenue for the second quarter of 2023 to increase at least 25% year-over-year (YOY). Biolase is also looking for 2023 revenue to see a minimal increase of 25%. To go along with that, the company is estimating positive adjusted EBITDA results for the year.
BIOL stock is down 12.5% as of Friday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
