Guidant Down after Medical Devices Maker Warns of Lower Revenues
Shares of Guidant (GDT ) were trading lower after the medical devices maker said it sees fourth quarter revenues coming in lower than expected.
Bear Stearns, meanwhile, maintained a buy rating on the stock. Analyst Rick Wise said fourth quarter revenues will come in at $649 million, $43 million below his estimates.
The analyst said the miss comes as Guidant was expected to benefit from two key new product introductions - the Tetra coronary stent and Prizm 2 defibrillator. Since these products were supposed to provide positive momentum in the fourth quarter, the company's disappointing showing could raise doubt in investors' minds about the company's ability to meet estimates in 2001, Wise added.
He also said the shares will range trade until more information about competitive issues and product milestones emerge. Shares of Guidant were trading down 5 at 46-5/16.