Natus shares sink after 2Q revenue misses forecast
Shares of Natus Medical Inc. sank Monday after the maker of medical devices for newborn care said its revenue slipped unexpectedly late in the second quarter and will come in lower than it expected.
THE SPARK: The San Carlos, Calif., company said revenue from the quarter that ended June 30 is now expected to be between $81 million and $82 million, down from the company's previous guidance for $86 million to $90 million.
Analysts surveyed by FactSet expect, on average, revenue of $88.8 million for the quarter.
The company said in a brief statement that weakness in its international markets, particularly in Europe, led to the unexpected drop. It added that domestic revenue was within expectations.
THE BACKGROUND: Natus Medical's products include software systems, incubators, hearing screening systems, phototherapy devices for treating newborn jaundice and head-cooling products for the treatment of brain injury in newborns.
The company will discuss its second-quarter results during an Aug. 1 conference call and will update its forecasts for the third quarter and 2013.
SHARE ACTION: Down 12.7 percent, or $1.82, to $12.47 Monday morning while broader trading indexes rose slightly. The shares are still up about 12 percent so far this year, after closing 2012 at $11.16.