Natus Medical (BABY) Stock Plunges on Preliminary Q1 Revenue

NEW YORK (TheStreet) -- Shares of Natus Medical (BABY) are plummeting 19.2% to $32.03 on heavy trading volume late Monday afternoon following the release of lower-than-expected preliminary 2016 first quarter revenue.

The company now expects revenue for the period to be about $87.5 million, lower than its previous guidance of $91.5 million to $92.5 million, and below analysts' expectations.

Analysts are looking for revenue of $91.99 million for the quarter.

"Pushouts of key orders in both our international and domestic markets led to weaker than expected revenue late in the first quarter," President and CEO Jim Hawkins said in a statement.

The new figure excludes revenue from the company's contract with the Venezuela Ministry of Health, the company noted.

"In addition, we did not have any revenue associated with the Venezuela Ministry of Health contract as we did not receive any prepayments during the quarter," Hawkins noted.

The Pleasanton, CA-based company is a provider of newborn care and neurology healthcare products and services.

Natus is slated to report its 2016 first quarter results before the market open on April 20.

About 2.17 million of the company's shares were traded so far today vs. its average volume of 322,058 shares per day.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.

This is driven by a number of strengths, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered. 

The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and notable return on equity.

The team believes its strengths outweigh the fact that the company has had sub par growth in net income.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: BABY