Why Outset Medical's Shares Rose 22.5% in December
Shares of Outset Medical (NASDAQ: OM) climbed 22.5% in December, according to data provided by S&P Global Market Intelligence. The dialysis equipment maker closed November at $21.08 a share, then rose to as high as $27.11 on Dec. 21. The stock has still declined more than 47% over the past year and has a 52-week low of $11.41 and a 52-week high of $48.71.
Outset manufactures the Tablo Hemodialysis System, designed to simplify the task of dialysis for hospitals and in-home care for patients with kidney disease. The company's shares kept climbing because of improved guidance that it mentioned in its third-quarter report, but also because the company signed a contract with the Department of Veterans Affairs.
In the third quarter, Outset said it now expected full-year 2022 revenue to fall between $111 million and $113 million, compared to $102.6 million for 2021. The contract, signed in August, is for five years and will enable the company to sell its Tablo systems into the 106 VA hospitals in the United States and into home settings for veterans. The system is already in some VA hospitals, but the deal will allow VA centers to buy additional Tablo consoles and send veterans home with them.
Source Fool.com
