Eargo Inc. (EAR) stock plummeted 52.19% in after-hours on Wednesday, September 22, 2021, and closed the daily trading at $10.36. Even in the regular trading session, EAR’s stock lost 1.77%. EAR shares have moved up 1.98% in the past week. Over the past three months, the stock has lost 42.88%, while over the past six months, it has declined 57.15%. The company has a current market of $840.80 million and its outstanding shares stood at 38.81 million.
EAR Stock facing a criminal probe
On September 22, 2021, Eargo Inc. (EAR) stock reported that it is the target of a criminal investigation by the U.S. Dept. of Justice.
The investigation is related to insurance reimbursement claims the Company has submitted on behalf of its customers covered by federal employee health plans. The company is cooperating with the investigation. The company also withdrew its financial guidance for the fiscal year ending Dec. 31, due to the investigation.
EAR Stock participation in the recent investor conference
Eargo Inc. (EAR) stock recently participated virtually at the 2021 Virtual Wells Fargo Healthcare Conference, which was held on September 9, 2021. The company was presented by the president and CEO, Christian Gormsen.
EAR Stock recent financial results announcement
On August 12, 2021, Eargo, Inc. (EAR) stock reported its financial results for the second quarter ended June 30, 2021.
Q2 2021 financial highlights
- EAR stock reported total revenue of 9 million for the second quarter of 2021 compared to $15.9 million for the second quarter of 2020.
- In Q2 2021, gross profit was $16.4 million, compared to $10.7 million for Q2 2020.
- The gross margin was 71.8% in Q2 2021 compared to 67.3% for the second quarter of 2020.
- Total operating expenses were $35.5 million in Q2 2021 compared to $16.3 million in Q2 2020.
- It suffered a net loss of $19.3 million, or $0.50 per share in Q2 2021, compared to a net loss of $6.6 million, or $23.66 per share, for the second quarter of 2020.
- As of June 30, 2021, the company had cash and cash equivalents of $179.4 million compared to $212.2 million as of December 31, 2020.
FY 2021 financial outlook
For FY 2021, the company had withdrawn its financial guidance on September 22, 2021, but it was is expecting
- Total revenue in the range of $93 million to $96 million.
- GAAP gross margin in the range of 68% to 71%.
New Eargo 5 Hearing Aid
On July 21, 2021, Eargo, Inc. (EAR) stock announced that it collaborated with battery maker VARTA AG to power the recently released Eargo 5, Eargo’s smallest and most advanced hearing aid to date.
The battery developed by VARTA provides up to five years of running time based on usage and the highest energy density in the smallest space for Eargo 5. The new battery is fully charged within four hours and can provide up to 16 hours of continuous power.
EAR stock plummeted on Wednesday after the company broke the investigation news and withdraw its financial guidance as well. We can expect to further decline in the coming trading sessions.