Ev3 expects 2008 sales, profit below Wall Street estimates

On an adjusted basis, the company expects to break even or post profit of up to 5 cents per share on sales between $425 million and $430 million. The adjusted profit estimates exclude amortization and stock-based compensation expense.

Ev3 previously estimated an adjusted profit of 50 cents per share on sales of between $500 million and $570 million, but pulled its guidance last month.

Analysts polled by Thomson Financial, on average, forecast higher 2008 earnings of 7 cents per share on sales of $459.4 million.

President and Chief Executive Robert Palmisano said the guidance takes into account factors that could hurt the business in 2008, including the effect of competition and new entrants into the market and elevated customer inventory levels.

For the second quarter, ev3 expects a loss of between 6 cents and 9 cents per share on sales of $101 million to $103 million. Analysts, on average, anticipate breakeven earnings and revenue of $110.5 million.

Shares fell $1.60, or 18.8 percent, to $7.25 in premarket trading.