The All Ordinaries Index (ASX: XAO) is down 0.8% in morning trade, and it's certainly not being helped by this tumbling ASX All Ords stock.
The company in question is ASX healthcare stock Avita Medical Inc (ASX: AVH).
The Avita Medical share price closed yesterday trading for $4.50. In early morning trade on Thursday, shares crashed to $3.77, down a precipitous 16.3%.
Following some potential bargain hunting, shares have since recouped some of those losses.
At the time of writing, shares in the ASX All Ords stock are trading for $4.00 apiece, down 11.1%.
Here's what's happening.
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ASX All Ords stock tumbles on missed guidance
Avita Medical is a commercial-stage regenerative medicine company focused on devices for wound care management and skin restoration.
And the ASX All Ords stock is under heavy selling pressure today after reaffirming management's expectations for full-year 2024 revenue to come in at the lower end of Avita's previously provided guidance of US$78.5 million to US$84.5 million.
The company also announced an update to its expected commercial revenue for the first quarter of 2024.
For the March quarter, Avita Medical said it now expects commercial revenue to be in the range of US$11.0 million to US$11.3 million. That's significantly lower than the company's prior revenue guidance of US$14.8 million to US$15.6 million for the three-month period.
Management pointed to a slower-than-expected conversion rate of new accounts for Avita's expanded label of full-thickness skin defects for the downward revision.
Commenting on the results putting the ASX All Ords stock under the gun today, Avita Medical CEO Jim Corbett said, "In light of the challenges encountered in the first quarter of 2024, we are intensifying our efforts to drive growth."
Corbett added:
While our account conversion rate impacted our quarterly revenue, we remain optimistic for the full year.
With the recent launch of PermeaDerm in March and the upcoming launch of RECELL GO, along with our deeper understanding of the VAC processes and timelines, we believe that we will meet the lower end of our previously provided annual revenue guidance range of US$78.5 million to US$84.5 million.
Corbett said that Avita remains committed to delivering value and making a positive impact on the lives of its patients.
The company is expected to report its financial results for the first quarter of 2024 after the close of the US financial markets on 13 May, meaning we should have them here at market open on 14 May.
Avita Medical share price snapshot
Despite today's big fall, shares in the ASX All Ords stock remain up 8% over six months.
