Masimo shares plunged almost 30% in pre-market trading on Tuesday after it reported preliminary second quarter revenue that came in far below expectations.
The Irvine, California-based medical technology company expects 2Q revenue to range from $453 million to $457 million, below the Street’s forecast of $553.2 million, according to Refinitiv.
It said its healthcare revenue for the period was lower than expected due to a decrease in demand for single-patient use sensors, labor shortages, and pressure on hospital budgets limiting capital equipment spending.
On the consumer side, the company noted softness in the premium and luxury categories.
Masimo will hand down its complete 2Q results and provide updated fiscal year 2023 financial guidance after the market closes on Tuesday, August 8.
It expects to reduce the lower end of its revenue guidance for its healthcare business to $1.3 billion from $1.45 billion, while it continues to evaluate the upper end of its revenue guidance.
The company also intends to downwardly revise its annual revenue guidance for its non-healthcare business to a range of $800 million to $850 million from a range of $965 million to $995 million.
Masimo shares had fallen 28.7% to US$104.90 before the opening bell.
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