Shares of Masimo Corp. MASI on Monday tumbled 25% after hours after the hospital-equipment maker forecast second-quarter sales that were far below estimates and tempered sales expectations for the full year, amid delayed orders, fewer hospital patients and other issues. Executives at the company, which makes patient-monitoring technology, said they expected Masimo’s second-quarter revenue to come in between $453 million and $457 million, below FactSet forecasts for $553 million. They attributed the weaker results to an array of factors: Large orders that were pushed back to the second half of the year, an oversupply of sensors among some customers, an “abnormally early end of the flu season,” thinly-staffed hospitals and strained hospital budgets that hit demand. Management also said they expected to cut the lower end of its healthcare segment’s full-year revenue outlook to $1.3 billion from $1.45 billion, while likely also cutting the full-year revenue outlook for its non-healthcare business to a range of $800 million to $850 million, from $965 million to $995 million.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
0
0
