Shares of Volcano (NSDQ:VOLC) were down nearly 10% on Wall Street in late-day trading Friday, after the medical device company revised its sales and earnings guidance downwards, a day after a tough 4th-quarter earnings release.
The San Diego, Calif.-based firm said it expects to turn 8¢-11¢ earnings per share on $406 million-$412 million in sales, far below the 29¢ EPS on $423.5 million analysts were projecting based on Volcano’s Q4 earnings release.
Volcano did not give any reason reason for the revision in a regulatory filing.
Several Investment houses downgraded VOLC stock based on the revised guidance, including Goldman Sachs, which changed its rating from "conviction buy" to "neutral."
"We see Volcano as a ‘show me’ story, having missed sales 3 of the last 4 quarters and guiding below Street 3 consecutive times. Further, there are limited clinical/regulatory catalysts to drive an outer year inflection point," the bank wrote in a note to investors last week.
On Thursday, Volcano officials reported profits of $2.5 million, o 5¢ earnings per share, on $102 million in sales during the 3 months ended Dec. 31, 2012, down significantly from $29.4 million, or 56¢ EPS, on $92.7 million in sales during the same period in 2011.
For the full year, Volcano’s earnings plunged to $8 million, or 15¢ EPS, on $382 million in sales, for a profit decline of some 79% compared with 2011.
VOLC shares closed down 8.3% Feb. 22 at $22.63 apiece.