By Dean Seal
Shares of Omnicell hit a seven-year low after the company lowered its 2023 earnings and revenue guidance as demand weakens.
The stock was down 17% at $29.69 in midday trading. Shares have fallen 41% year-to-date and haven’t traded this low since April 2016.
The healthcare-technology company now expects revenue of $1.135 billion to $1.155 billion for 2023, down from its prior guidance for $1.16 billion to $1.2 billion.
Adjusted earnings, which strip out one-time items, are now projected to be $1.65 to $1.80 a share for the year instead of $1.75 to $2 a share, as previously estimated.
Chief Executive Randall Lipps said the downgrade came in light of a weakening demand picture. The company’s third-quarter results, meanwhile, came in above analyst expectations.
Omnicell posted a profit of $5.6 million, or 12 cents a share, compared with $16.8 million, or 37 cents a share, in the same quarter a year ago.
Adjusted earnings came in at 62 cents a share, above analyst forecasts for 47 cents a share, according to FactSet.
Revenue fell 14% to $298.7 million, ahead of the $295.5 million market consensus of analysts polled by FactSet.
Write to Dean Seal at [email protected]
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