Volcano Corp. (NSDQ:VOLC) are down 4.4 percent this morning after the medical device company reported its third-quarter numbers yesterday, beating Wall Street’s expectations despite plunging profits, but lowering the top end of its sales guidance for the rest of the year.
The San Diego-based medical device maker posted profits of $2.6 million, or 5 cents per share, on sales of $85.8 million for the three months ended Sept. 30.
That’s a 17.7 percent increase to the top line, but a 52.9 percent hit to the bottom line, compared with profits of $5.6 million, or 10 cents per share, on sales of $72.9 million.
Analysts had expected EPS of 4 cents, but Volcano still disappointed The Street with its forecast for 2011 revenues. The company said it now expects to log sales of $342 million to $345 million for the full year, down from a top end of $347 million, citing "current expectations for healthcare procedure activity and telecom business sales." Earnings are pegged at 19 cents to 21 cents (under analysts’ forecast of 22 cents).
“Given the increased focus on comparative effectiveness, we continue to be optimistic about the long-term prospects for our current and future offerings – particularly IVUS – as recent data from the Matrix study reinforces positive outcomes with respect to reduction in deaths and adverse events when using IVUS versus the use of angiography alone,” president & CEO Scott Huennekens said in prepared remarks. "Over the next year, we will be introducing enhancements to our current offerings, as well as new products that will enable us to address new markets."