Shares of Natera slumped after the company posted a wider-than-expected loss in its latest quarter and said its chief executive is stepping down.
The stock declined 20% to $292.47 in after-hours trading on Thursday. Shares closed the market session down 7% at $363.76.
The molecular diagnostics and genetics testing company logged a third-quarter loss of $59.9 million, or 42 cents a share, compared with $87.5 million, or 64 cents a share, a year earlier. Analysts polled by FactSet expected a loss of 28 cents a share.
The wider-than-expected loss came as Natera posted revenue growth of 34% to $794 million. Analysts expected $707.5 million.
Total operating expenses were up 20% to $576.1 million, driven by headcount growth to support new product offerings and increases in clinical trial expenses.
The company raised its top-line guidance as a result to $3.01 billion to $3.04 billion, compared with its previous forecast of $2.85 billion to $2.91 billion.
Natera on also said that Chief Executive Steve Chapman will step down from the position, and remain a consultant and an adviser to the board.
Solomon Moshkevich was appointed CEO, effective immediately. Moshkevich, who joined the company in 2011, was most recently president of the clinical diagnostics segment, where he led the company's oncology expansion.
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