NEW YORK (TheStreet) -- Volcano (VOLC) shares are down -19.6% to $12.68 on Friday after being downgraded to "market perform" from "outperform" by analysts at Oppenheimer (OPY) - Get Report who also lowered its price target to $15 from $22.
The downgraded outlook follows the release of the medical equipment manufacturer's second quarter earnings results.
The company reported a quarterly net loss of $5.5 million, or 10 cents per diluted share, that was 5 cents worse than expectations. Revenue of $102.6 million also fell just short of analysts guidance of $103.1 million.
TheStreet Ratings team rates VOLCANO CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate VOLCANO CORP (VOLC) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: VOLC Ratings Report