Health Stocks in Motion

Shares of Zoll Medical(ZOLL Quote) were among the worst-performing health-related stocks Wednesday, falling 11% after the company cut its third-quarter outlook below Wall Street expectations.

The medical-device maker now expects to post break-even earnings on sales of $50 million to $51 million, down about $3 million from its previous forecast. Analysts polled by Thomson First Call had been expecting earnings of 10 cents a share on sales of $53.7 million. Zoll previously expected earnings of 10 cents a share.

"We are clearly disappointed in our ability to improve our profitability relative to the second quarter as previously anticipated," the company said. In particular, the company said that it "struggled to get all shippable orders out due to end of quarter time constraints. Hopefully the existence of a larger backlog will help our efforts to improve our end of quarter execution." The company's backlog ended the quarter at about $6 million, up substantially from the $2 million backlog it had at the beginning of the quarter. Shares were recently trading down $2.93 to $24.45. ...