LivaNova Falls as Medical Device Company Preannounces Weak Revenue - TheStreet

Shares of LivaNova (LIVN) - Get Report  , the medical device maker, tanked hard Friday after the company preannounced weak revenue for its fiscal first quarter.

The stock was falling 26.37% to $71.15 a share.

Sales for the first quarter of 2019 are expected at $251 million, flat year over year, and about 5.3% below Wall Street's consensus. The company didn't disclose its expectations for first-quarter earnings per share.  Wall Street's expects first-quarter profit of 65 cents.

LivaNova said neuromodulation sales should be around $94 million in the first quarter. Management expects heart valves sales to be $25.6 million for the quarter, which would be a 17.5% year-over-year decrease. Expected cardiopulmonary revenue of $121 million would be a 2.9% decrease. 

Intense competition may be to blame for the upcoming reporting quarter. 

"While our Europe and Rest of World regions continued to grow above plan, I am disappointed by our execution in the quarter in light of the changing competitive environment within the U.S. in our neuromodulation and heart valves businesses," said Damien McDonald, CEO LivaNova. "We believe we can address these challenges and remain committed to our strategy to drive sales, build global capabilities and establish a strong product portfolio. We believe these efforts will serve the needs of our customers and patients to create quality, long-term value for our shareholders." 

Shares have fallen 22% this year. 

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