Kensey Nash shares down on Q3 results, Q4 outlook
Shares of Kensey Nash (Nasdaq: KNSY) plunged on unusually heavy volume today after the medical technology company reported disappointing fiscal third quarter results and fourth quarter outlook.
For the third quarter ended March 31, Exton, Pa.-based Kensey Nash reported net income of $2.4 million, or $0.19 per share, on revenue of $19 million, compared with net income of $1.8 million, or $0.15 per share, on revenue of $15.7 million.
Five analysts polled by Thomson First Call were expecting earnings per share of $0.21, on revenue $19.5 million.
Looking ahead, the firm said it expects to report earnings per share in the range of $0.14 to $0.15 on revenue in the range of $18 million to $18.7 million in its fiscal fourth quarter.
Five analysts polled by Thomson First Call were expecting earnings per share of $0.28 on revenue of $21.9 million.
Kensey Nash’s stock dropped by $4.70, or nearly 15%, to $26.85. By mid-day, more than 565,000 shares had exchanged hands, compared with a three-month average daily volume of 91,500 shares.
The medical technology company said it faced manufacturing challenges during the third quarter. Its ThromCat product, which had limited availability for several weeks, is now again available in full supply to our customers.
Also, Kensey Nash said it has been actively reconfiguring its sales force, which resulted in a high turnover of people and changes in territories. That in turn led to a “lower than expected number of sales representatives in the field during the quarter.”
Shares of Kensey Nash have traded between $23.73 (on Aug. 21, 2006) and $33.69 (on Oct. 18, 2006) in the past year.
