Invacare (NYSE:IVC) posted first-quarter results that missed the earnings consensus on Wall Street and matched on revenue estimates.
The Elyria, Ohio-based non-acute medical equipment maker yesterday reported losses of –$14.04 million, or –41¢ per share, on sales of $196.2 million for the three months ended March 31, for a sales loss of –10.16% compared with Q1 2020.
Earnings per share were –36¢, 3¢ behind The Street, where analysts were looking for sales of $196.2 million.
“We entered 2021 with strong demand for lifestyle and respiratory products and strengthening demand for mobility & seating products. We see these trends continuing into the second quarter. Despite good demand, our first quarter revenues were lower by approximately $15 million of firm orders which didn’t ship and become revenue in the quarter as a result of various supply chain disruptions, which impacted all regions. Component delays and parts shortages prevented the timely delivery of confirmed orders and led to a higher than typical backlog, with the additional backlog expected to convert to net sales within the next two quarters. As our team continues to rise to the challenge of supporting our customers globally, we will mitigate further disruptions by investing in additional inventory in the short-term,” CEO Matt Monaghan said in a news release.
Looking forward, Monaghan is encouraged by ahealthy order book, high backlog, and early second quarter indicators that suggest the Q1 revenue decline was temporary. “As pandemic-related restrictions ease and supply chain disruptions subside, we anticipate significant improvement in our results during the second half of the year, driven by strengthening demand for our products, backlog reduction, fulfillment of pent-up demand, and increased adoption of compelling new products.”
Invacare reaffirmed its full-year 2021 guidance of a constant currency net sales growth in the range of 4% to 7%.
Shares in IVC were down –11.12% to $7.91 apiece in mid-morning trading. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down slightly.
