Shares in medical company ConvaTec fell 20% after it lowered its profit guidance this morning.
This morning’s results: Supply chain issues scupper ConvaTec’s Q3 results
The Share Centre has said it expects shares likely to fall back to start of year levels as a result of today’s news and has put its current ‘buy’ recommendation under review.
Lower revenue guidance
Graham Spooner, investment research analyst at The Share Centre, said: “Shares in international medical products and technologies company Convatec were down 14% in early morning trading today following news that the group was lowering its revenue guidance for the year.
“The group, which is a fairly recent entrant to the FTSE 100, blamed poor sales of new products in the latest quarter as well as problems with supply related to Advanced Wound Care manufacturing lines from the US to the Dominican Republic. Full year organic revenue growth is now forecast to be 1% to 2% down from an expected 4%+.