ConforMIS Inc. (NASDAQ: CFMS) reported its first-quarter financial results after the markets closed on Thursday but the results did not live up to the expectations. Now the earnings for this quarter were more or less in line, but the guidance reflected a weaker outlook as to where this company is headed. As a result, analysts have poured into the stock after watching it get halved in Friday’s session.

24/7 Wall St. has included some highlights from the earnings report, as well as what analysts are saying about ConforMIS after the fact.

The company said it had a net loss of $0.37 per share on $20.3 million in revenue, compared to consensus estimates from Thomson Reuters of a net loss of $0.38 per share on $19.23 million in revenue. During this quarter, total revenue increased by 38% from the same period of last year. This was made up of U.S. product revenue increasing 43% and Rest of the World product revenue increasing 20%.

In terms of guidance for the 2016 full year, ConforMIS expects to have revenues in the range of $76 million to $81 million, down from the previous guidance of $84 million to $87 million. Consensus estimates call for a net loss of $1.36 per share on $85.75 million in revenue for the 2016 full year.

Separately, the second quarter guidance calls for revenue in the range of $17.7 million to $18.7 million, compared to the consensus estimate of $20.24 million in revenue.

Oppenheimer saw these results and consequently cut its price target to $12 from $19 while maintaining an Outperform rating. ConforMIS’s first-quarter sales topped Oppenheimer’s and Wall Street’s forecasts, with the quarter benefiting from some catch-up procedures impacted by the third quarter recall. Sales guidance for 2016 was lowered as the base business (iTotal CR, iDuo, iUni), while seeing gradual recovery, hasn’t recovered to pre-recall ordering rates. iTotal PS system demand has exceeded management’s plans following full launch in March, and the company has modestly increased 2016 PS expectations.

Oppenheimer further noted that CEO Philipp Lang indicated that he and the board of directors have initiated a search for his successor. Overall, the lowered guidance is obviously disappointing.

Wells Fargo had something to say about ConforMIS as well, maintaining its Outperform rating but lowering its valuation range to $9 to $10 from the previous level of $14 to $15. The investment bank added in its report:

We continue to believe that ConfoMIS [sic] has differentiated, unique technology with its customized implants that could be disruptive to the orthopedic implant market, but execution has suffered since the company’s product recall which was announced in late August. We are stepping to the sidelines because (1) the lingering effect of the product recall and salesforce distraction has negatively impacted ConforMIS’ core business and iTotal PS progress, while encouraging, is not enough to offset the slowdown in the core business; (3) the announced management change adds additional near-term (NT) uncertainty to the business; (4) the slower revenue growth delays the rate of gross margin improvement; and (5) ConforMIS may have to raise capital over the next two years, in our view.

A few other analysts weighed in on ConforMIS:

• Canaccord Genuity has a Buy rating but lowered its price target to $12 from $18.
• JPMorgan downgraded it to a Neutral rating.
• Sterne Agee CRT has a Buy rating but lowered its price target to $12.
• Deutsche Bank lowered its price target to $12 from $26.

Shares of ConforMIS were trading down more than 49% at $5.12 on Friday’s close. The stock has a consensus analyst price target of $19.80 and a 52-week trading range of $4.80 to $26.93.

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