A Second Look: Ev3 Edges Higher

The stock gained 50 cents, or 6.7 percent, to $8 in afternoon trading. On Monday, the stock reached an all-time low, tumbling to $7.32.

Friedman, Billings, Ramsey analyst Christopher Warren said Corbett's departure and the weak revenue guidance mark another crossroads for a company already in transition. Some of those transition issues include the integration of FoxHollow Technologies Inc.'s salesforce, tougher stent regulations and tougher competition.

But, the company's move to withdraw its 2008 guidance gives incoming CEO Robert J. Palmisano the opportunity to reset the company's expectations and goals within the company's reach. Palmisano is the former CEO of IntraLase.

"In about two years as CEO of IntraLase, Bob created $10 of per share value by selling to Advanced Medical Optics, despite missing Street consensus four quarters out of seven," Warren said, in a note to investors. "At ev3, he takes the reins of a more complicated business model with both positives and negatives."

Ev3 expects first-quarter revenue to reach $101.3 million, while it had previously projected revenue of about $107 million. All other 2008 guidance was withdrawn.

Warren reaffirmed a $10 price target on the stock but recommended investing elsewhere while the new management team comes up with its guidance.