Medical technology firm Novanta (NASDAQ:NOVT) saw its shares plummet by 16% to $116.16 on Tuesday, hitting a 52-week intraday low of $111.20. The Bedford-based company's stock plunge is attributed to falling Q3 profits and a weaker product demand compared to the previous year.
The firm's profit for the quarter ending Sept. 29 dropped to $21.2 million, or 59 cents per share, from $22.5 million or 63 cents per share in the same period last year. This decline has contributed to a 15% annual fall in shares.
CEO Matthijs Glastra pointed out that rising interest rates have been impacting end-market demand, causing delays in firms' purchases. This unfavorable market condition has led Novanta to downgrade its annual revenue forecast from the initial range of $892-$902 million to a revised range of $878-$882 million.
In addition to the revenue forecast adjustment, Novanta also revised its profit guidance for the year. The new estimate stands at $2.98-$3.05 per share, slightly adjusted from the previous guidance of $2.96-$3.15 per share.
The company also reported a 3.3% decrease in Q3 revenue after accounting for foreign exchange and acquisitions, further exacerbating the financial challenges facing the firm.
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