Avanos Medical Inc. (AVNS) stock plummeted more than 10% in the pre-market trading session on Wednesday, following the release of the company's disappointing fourth-quarter results and underwhelming guidance for the full year.

The medical technology company reported a staggering net loss of $397.3 million for the fourth quarter, with an operating loss of $418.5 million and an EBITDA loss of $407.6 million. Despite generating $179.6 million in sales, Avanos Medical's gross profit stood at a mere $98 million, reflecting the company's significant operational challenges.

Adding to the concerns, Avanos Medical provided a lackluster earnings guidance for the full year, projecting an adjusted EPS range of $1.05 to $1.25, significantly lower than market expectations. The company's weak outlook further exacerbated investors' concerns about its future prospects, contributing to the pre-market sell-off.