Shares of Masimo Corp., the Irvine-based maker of oxygen monitoring devices, dropped 27% in after-hours trading after reporting second-quarter sales missed expectations.
Preliminary second-quarter sales ranged from $453 million to $457 million, below the average analyst expectation of $553 million.
The company said it’s “taking actions to reduce costs” in the second half this year.
Sales in its healthcare unit were down for several reasons, including an earlier end than expected to the flu season, increased hospital labor costs lowering their demand for capital equipment and large orders delayed until the second half.
Non-healthcare revenue also “fell below expectations as the decline in demand previously seen in lower-end consumer audio categories extended into the premium and luxury audio categories and across more geographies.”
Shares dropped to $108 in after-hours trading. The shares fell 1.6% to $147.16 in regular trading and a $7.8 billion market cap.
The company plans to hold a conference call on Aug. 8 to discuss its second-quarter results.
