Spectranetics Corp (NASDAQ:SPNC) Guidance Cut Prompts Class Action Lawsuit


Dallas, Texas 07/27/2015 (Financialstrend) – Spectranetics Corp (NASDAQ:SPNC) move to lower its second quarter guidance has not gone well with shareholders seen by a class action lawsuit lodged by law firm Goldberg Law PC.  The company lowered its full-year guidance to a range of between $240 million and $250 million from an initial guidance of $258 million

Spectranetics Corp (NASDAQ:SPNC) lowered its guidance on concerns that the ongoing push to optimize the sale team as well as the competitive drug-coated balloon launches could take a toll on operations going forward. Full Year, the company expects to post a net loss of between 96 cents and $1.07 cents a share against analyst estimates of $1.05 a share.

Spectranetics Corp (NASDAQ:SPNC) posted a net loss of $7.2 million for the second quarter translating to a loss of 17 cents a share on revenues of $61.7 million. Revenue was up by 42%, but the improvement was tied to the AngioScult acquisition. Excluding the acquisition, revenue was up by 9%. Lowering full year guidance while the company continues to operate at a loss sealed the stock’s fate in the market forcing a 29% slump.

 Sell Rating

 The company is certainly taking actions to reinvigorate sales to prevent a further slump. However, rapid adoption of competitive products is a point of concern especially on the long-term prospects of AngioScult. TheStreet research firm currently rates this stock as a ‘Sell’ citing weakness that could make it extremely difficult for shareholders to generate value from the stock

Feeble growth in earnings per share in recent quarters is a point of concern to analysts at TheStreet research firm as Spectranetics Corp (NASDAQ:SPNC) continues to post deteriorating net income. High debt management risk also raises further doubt on shareholders ability to generate value from the stock as the Company continues to struggle with weak operating cash flow.

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