On January 31, Xomertry Inc. (XMTR) declared its unaudited preliminary results for Q4 2021. Along with this, the company also announced a proposed offering of convertible senior notes. Consequently, the stock went down in the after-hours.
During the regular trading session, XMTR stock was bullish with a gain of 8.31% at its closing price of $51.60. Following the news, the stock went down by 6.59% in the after-hours to reach a $48.20 price per share.
The manufacturing solutions provider, Xomertry Inc. was founded in 2013. Currently, its 41.74 million outstanding shares trade at a market capitalization of $2.12 billion.
Moreover, XMTR stock has vastly remained unchanged during 2022 so far with a year-to-date gain of 0.68%.
Preliminary Q4 2021 Expected Results
For the fourth quarter of 2021, the company expects total revenue to be between $65.5 and $67.5 million. Furthermore, this also includes $3.5 million to $4.5 million in revenue from Thomas Publishing Company following its acquisition on December 9, 2021.
Therefore, excluding Thomas, the Q4 2021 revenue is expected to be between $62.0 and $63.0 million. Comparatively, the same was $38.0 million in the year-ago period, thus marking an increase of 63-66% year over year.
Additionally, excluding Thomas, the expected gross profit margin for Q4 2021 is between 27.3% to 27.6%. This compares to 25.0% for the year-ago quarter.
XMTR is set to declare its complete Q4 and full-year 2021 results on March 17, 2022, after the close of the market.
XMTR’s Proposed Offering
On Monday, the company also announced its proposed offering of Convertible Senior Notes. Hence, XMTR plans to offer a $250 million aggregate principal amount of Convertible Senior Notes due 2027. The notes would be offered to qualified institutional buyers in a private placement.
The company also plans to offer a 13-day option for buying an additional $37.5 million aggregate principal amount of Notes. In addition, the net proceeds from the offering are intended for working capital and general corporate purposes.
XMTR’s Recent Participation
Recently, the company participated in the 24th Annual Needham Virtual Growth Conference. The company’s senior management presented at the conference on January 14, 2022.
Conclusion
On Monday, XMTR stock was doing well in the regular session but new developments led it to a fall after-hours. While the investors were already disappointed by the weak outlook for Q4 2021, the proposed private placement did not help at all. In conclusion, the weak expectations for the upcoming earnings report combined with the proposed offering caused the stock to plummet in the after-hours on Monday.
