Posted: 8 month(s) and 21 days(s) ago   |   0 Comment(s)   |   Rating: 0 0
Posted by: ToddShriber

CardioNet (BEAT.NSDQ) was hammered today after lowering its profit outlook for 2009. As a result, the medical device maker fell $6.75, or 41%, to $9.57, making the stock the biggest loser on the Nasdaq today. Volume was more than 23 times the daily average.

CardioNet now expects a profit of 30 cents to 35 cents per share and $156 million to $160 million in revenue this year, down from an earlier outlook for 69 cents to 73 cents per share in profit, and revenue between $170 million and $175 million. To make matters worse, the company withdrew its guidance for 2010 and 2011.

Analysts were expecting a profit of 66 cents per share in 2009, $1.25 per share in 2010 and $1.85 per share in 2011. Oh, the pain doesn't end there. Analysts from Citigroup and Roth Capital downgraded the stock to "hold" from "buy."

CardioNet is downright expensive at 30 times trailing earnings given the dour news it released today. It's hard to be a fan of a stock with 30 PE that is lowering its profit outlook.

For more on CardioNet, go here: http://www.cardionet.com

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