Why Invacare Stock Is Trading Lower After Q3 FY21 Outlook Update

Invacare Corporation's IVC stock plunged to a 52-week low after updating Q3 FY21 guidance.
The Company said that headwinds related to labor, material, and freight, will continue to impact its business.
Matt Monaghan, Chairman, President, and CEO, stated, "In the short-term, we expect to maintain elevated levels of inventory and incur higher conversion costs. Management is working with customers on price increases as appropriate to defray significantly higher input costs; however, the benefit of those actions will not be realized until 4Q21."
For Q3 FY21, Invacare expects constant currency net sales of 0% - 4% Y/Y, against the growth rate of 4% - 7% expected earlier.
The Company sees adjusted EBITDA of $6 million - $9 million, down from the previous outlook of $45 million.
The Company expects Free cash flow usage of $4 million - $7 million, versus free cash flow of $5 million.
Price Action: IVA shares are down 34.9% at $5.40 during the market session on the last check Thursday.