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Neuronetics Inc. (STIM) Stock Plummets Following Updated Guidance for Q3 2021 Revenues

Neuronetics Inc. (STIM) stock prices were down by 19.69% shortly after market trading commenced on October 13th 2021. This brought the price per share down to USD$5.14 early on in the trading day.


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STIM Stock’s Updated Guidance

October 12th 2021 saw STIM stock announce preliminary results for the third quarter of fiscal 2021. The company has forecasted generated revenue in the amount of USD$13.8 million. This is compared to the previously issued guidance, which ranged from USD$15 million to USD$16 million. Updated guidance for the full fiscal year 2021 now ranges from USD$53.3 million to USD$54.3 million. The reduction in revenue forecasts is driven largely by the company’s new sales team requiring additional time to get to full productivity. This extra time is required because of extended sales cycles, driven by the uncertainty caused by the Covid-19 environment.

Persevering Through Pandemic

Despite this uncertainty, STIM stock has continued to make significant progress in its strategic initiatives to facilitate future growth. The third quarter of fiscal 2021 saw the company hosted a second successful NeuroStar Summit, while concurrently implementing a variety of digital and social marketing campaigns to increase awareness. The company also launched a new program that helped identify more than 500 patients within existing customer practices who had the potential to be candidates for NeuroStar therapy.

Collaboration with Success TMS

October 5th 2021 saw STIM stock announce a commercial agreement with Success TMS. As per the agreement, the partnering company will make exclusive use of the company’s NeuroStar Advanced Therapy for Mental Health. This development will be for the treatment of patients suffering from treatment-resistant major depressive disorder (MDD). The company has also made a strategic investment in Success TMS, in the form of a USD$10 million term loan. This term loan will serve to further accelerate the growth of the company’s business. With the continued proliferation of neurohealth disorders in the United States, the collaboration has the potential to be highly expansive. The partnering company’s hope to change the lives of patients by increasing access to safe, effective, non-drug therapeutic alternatives.

Future Outlook for STIM Stock

The company reported a promising quarter despite the ongoing adverse effects of the coronavirus pandemic. STIM stock is poised to capitalize on the expanded scope of opportunities afforded to it as a result of its partnership with Success TMS. Current and potential investors are hopeful that management will be able to effectively leverage the resources at their disposal. This is hoped to facilitate consistent and organic increases in shareholder value over the long term.

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