Invacare (NYSE:IVC) shares took a hit today on restructuring plans news, even as Q4 results came in ahead of the consensus forecast.
The Elyria, Ohio-based company posted profits of $1.9 million, or 5¢ per share, on sales of $226.2 million for the three months ended Dec. 31, 2021, for a bottom-line gain out of the red on sales growth of 1%.
Adjusted to exclude one-time items, earnings per share were 8¢, 6¢ ahead of Wall Street, where analysts were looking for sales of $226.19 million.
“Taken together, we believe actions to mitigate increased input costs, elective implementation of pricing actions, narrowing our product offering, and additional restructuring actions will drive favorable product mix, improved profitability and free cash flow in 2022 and build long-term shareholder value,” Invacare Chairperson, President and CEO Matt Monaghan said in a news release.
Invacare is taking strategic actions around organizational restructuring and supply chain changes in 2022. The company did not provide specific financial guidance for the year but said it expects free cash flow to improve while revenues will likely be sequentially lower.
The company anticipates that its adjusted EBITDA will be negative with sequential quarterly improvements for the balance of the year as the expected profit improvement actions take effect.
Shares of IVC were down more than 26% at $1.71 apiece by midday trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 2%.