Ahead of the Bell: Volcano slumps on guidance

Shares of the medical-device maker Volcano slid 17 percent before the opening bell after a weak revenue forecast for the quarter and for the year brought about a slew of downgrades from Wall Street.

The San Diego company put revenue for the quarter ended in September at $95.8 million. That's up more than $2 million from last year, but short of the $97.1 million that Wall Street was looking for, according to a poll from FactSet .

The company cited foreign exchange rate.

The company, which focuses on imaging and therapy devices, also said it now expects full-year revenue of $391 million to $395 million. That compares with its prior range of $394 million to $400 million. The revision reflects slower growth for one of its businesses in Japan and the shift of about $1.5 million in ophthalmology revenue into next year.

For 2014, Volcano expects revenue growth of 9 percent to 11 percent on a reported basis or 8 percent to 10 percent on a constant-currency basis.

Analysts expect 2013 revenue of $398.7 million and 2014 revenue of $442.1, which implies growth of 11 percent year over year.

Credit Suisse Canaccord and JP Morgan Chase all downgraded the company.

Raymond James analyst Jayson Bedford maintained an "Outperform" rating but said he'll update his estimates after Volcano's investor meeting Wednesday.

Regarding the company's single-digit growth in the bottom end of its 2014 guidance, Bedford noted that, "Over the past few months, management has expressed confidence in a low-double-digit revenue growth profile, and even noted in the release that it expects to return to a 'low-to-mid-teens' growth profile in 2015. We do not expect investors to put much weight on the 2015 comments."

Shares of Volcano Corp. shares fell $4.26 to $20.10.