NEW YORK (TheStreet) -- Shares of Halyard Health (HYH) were falling 9.41% to $36.02 on heavy trading volume Tuesday after the medical instruments company missed analysts' estimates for earnings in the second quarter.
Halyard Health reported earnings of 52 cents a share for the second quarter, below analysts' estimates of 53 cents a share for the quarter. Revenue fell 5.9% year over year to $389.3 million, missing analysts' estimates of $403.35 million.
The company said it expects to report earnings of $1.90 to $2.10 a share for full year 2015. Analysts expect the company to report earnings of $2.31 a share for the year.
About 2.7 million shares of Halyard Health were traded by 1:04 p.m. Tuesday, well above the company's average trading volume of about 717,000 shares a day.
Insights from TheStreet's Research Team:
Halyard Health is a part of Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Here is what Jim Cramer, Portfolio Manager & Jack Mohr, Director of Research - Action Alerts PLUS had to say about the stock in a recent alert:
Halyard Health (HYH:NYSE) reported very disappointing second-quarter 2015 results this morning. Earnings per share of $0.52 came in roughly in line with consensus, but reported revenue of $389.3 million was below the consensus of $403.35 million.
Halyard's sales were mainly affected by lower volume and sales price in its surgical and infection prevention division, where revenues totaled $255 million -- down 11% over the previous year. Medical devices sales, meanwhile, were up 5% to $127 million.
As a result of the disappointing trends in the quarter and first six months of the year, HYH cut its full-year 2015 EPS guidance to $1.90 to $2.10 from $2.30 to $2.50. The company also expects sales for the year to decline 1% to 3% -- down from its previous expectations of 0% to 2% growth (with a drop of 3% to 5% in surgical and infection prevention sales). That being said, the company maintained its medical devices net-sales guidance of 2% to 4% growth.
We expect the stock to be down sharply in today's trading session, and are finding it increasingly difficult to justify holding onto shares. We will be on the 9:00a.m. ET call and back with incremental analysis.