Investors pushed share prices down today for Natus Medical (NSDQ:BABY) after the neonatal care company missed expectations with its third-quarter results.
Pleasanton, Calif.-based Natus pared its losses by -34.5% to -$5.6 million, or -17¢ per share, on sales growth of 6.5% to $130.6 million for the three months ended Sept. 30, compared with Q3 2017.
Adjusted to exclude one-time items, earnings per share were 40¢, 2¢ below the consensus forecast on Wall Street, where analysts were looking for sales of $132.9 million.
“Our 2018 third-quarter results are highlighted by 6.5% year-over-year revenue growth and 12.1% growth in non-GAAP operating income driven both by the acquisition of our neurosurgery business last year and modest organic growth in neuro,” president & CEO Jonathan Kennedy said in prepared remarks. “We also continued to make progress on the regulatory front, successfully completing an FDA audit and our first MDSAP audit in our Seattle facility during the quarter.”
Natus cut its earnings outlook for 2018, saying it now expects to report adjusted EPS of $1.47 to $1.50, down from from $1.50 to $1.60 previously, and lowered the top end of its revenue guidance to $525.0 million to $530.0 million, compared with $525.0 million to $535.0 million previously.
Fourth-quarter adjusted EPS are forecast to be 48¢ to 51¢ on sales of $135.0 million to $140.0 million; analysts on The Street are looking for adjusted EPS of 54¢ on $138.0 million in sales.
BABY shares were off by -1.1% at $30.82 apiece today in early trading.
