Volcano Corporation Shares Got Burned: What You Need to Know


Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of medical equipment provider Volcano Corp. (NAS: VOLC) are getting burned today, down by as much as 13%, after the company reported earnings last night.

So what: Third-quarter revenue added up to $85.8 million and earnings per share came in at $0.05. Both figures were slightly ahead of the consensus estimate, but the company trimmed its forward-looking guidance and rattled investors.

Now what: Full-year earnings per share is now anticipated in the range of $0.19 to $0.21, lower than the $0.22 that analysts were looking for. Full-year revenue was also lowered from a previously guided range of $342 million-$347 million to a new ballpark of $342 million-$345 million, while the market was looking for closer to $347 million. The gloomy outlook has triggered a slew of analyst downgrades and price target cuts, including those by Jefferies, Canaccord Genuity, and JMP Securities, who all rate the stock "hold" or "market perform."

Interested in more info on Volcano? Add it to your watchlist byclicking here.

At the time thisarticle was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Volcano. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.