Investors sent shares of Volcano (NSDQ:VOLC) down on Wall Street today after the medical device company said it expects lower sales for the rest of the year.
San Diego-based Volcano reported profits of $2.0 million, or 4¢ per share, on sales of $93.7 million during the 3 months ended Sept. 30.
That’s a bottom-line slide of nearly 25% on sales growth of 9.2%, compared with the same period last year.
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Although the earnings per share number met expectations on The Street, the cut in sales guidance – down from $384 million-$390 million to $380 million-$384 million – drove VOLC shares down 3.8% to $27.09 as of about 10:30 this morning.
Analysts were looking for a forecast of about 15% growth, rather than the 11%-13% Volcano said it expects. Volcano pegged the lowered outlook to "its transition to a direct sales model in Spain and continued softness in [percutaneous coronary intervention] activity, primarily in the U.S.," according to a press release.
"Volcano demonstrated strong momentum in the quarter as we continued to execute on our functional PCI market development and market share strategies despite a challenging economic environment, particularly in Europe," president & CEO Scott Huennekens said in prepared remarks. "We generated a 13 percent increase in our disposable revenues on a constant currency basis, driven by the continued strong growth of our FFR (Fractional Flow Reserve) disposable business, where revenues grew 54 percent year-over-year on constant currency basis with solid increases across all of our key geographies."
Volcano affirmed its EPS guidance of 18¢-21¢ for 2012.
