Why did OM's Q2 earnings fall short?

Outset Medical's (OM) Q2 earnings fell short, missing the consensus EPS by $0.43, due to a combination of factors: 1. **Revenue Shortfall**: Despite reporting a revenue surprise with $29.47 million, which was slightly above expectations, it is evident that the company's revenue did not fully compensate for its higher expenses or other financial obligations. 2. **Financial Restructuring**: The company's financial struggles are further highlighted by its announcement of a reverse stock split, which was implemented to address the stock's significant decline and to potentially stabilize and uplift the stock price. This strategic move indicates underlying financial instability that may have affected its ability to meet earnings expectations. In summary, Outset Medical's Q2 earnings fell short due to a combination of lower-than-expected revenue and significant financial restructuring efforts, which together paint a picture of a company struggling to maintain profitability and financial health.