WASHINGTON (AP) -- Shares of genetic testing products maker Nanosphere Inc. plunged more than 30 percent Wednesday after an analyst downgraded company shares on disappointing earnings and outlook.
THE SPARK: Jefferies analyst Brandon Couillard downgraded company shares to "Hold," citing disappointing second-quarter revenue of $1.9 million. That was more than 10 percent below analyst estimates.
The company also slashed its 2013 revenue forecast by 25 percent to $10.5 million from $14 million, reflecting slower sales for the company's bloodstream infection test. The test runs on the company's Verigene testing system. Couillard noted that the company now expects to place 175 systems this year, down from the 225 units cited in the company's initial forecast.
Calls placed to Nanosphere Wednesday afternoon were not immediately returned.
THE BIG PICTURE: The Northbrook, Ill., company's Verigene system runs molecular tests used to diagnose infections, viruses and other conditions. The company sold 166 Verigene systems in 2012.
SHARE ACTION: Shares of Nanosphere Inc. fell 86 cents, or 29.3 percent, to $2.07.