Shares of medical device maker Enovis Corporation (ENOV) plummeted 9.46% in pre-market trading on Thursday, following the company's announcement of a reduced profit forecast for 2025, despite reporting better-than-expected first-quarter results. The sharp decline reflects investors' concerns over the impact of tariffs on the company's profitability.

Enovis reported first-quarter adjusted earnings of $0.81 per share, surpassing analysts' estimates of $0.74. The company also raised its 2025 revenue forecast to a range of $2.22 billion to $2.25 billion, up from the prior projection of $2.19 billion to $2.22 billion. However, these positive aspects were overshadowed by the revised profit guidance.

The medical device maker cut its annual profit forecast to a range of $2.95 to $3.10 per share, down from its previous guidance of $3.10 to $3.25. This reduction is primarily attributed to an anticipated $20 million impact related to tariffs. Additionally, Enovis lowered its adjusted EBITDA forecast to $385-395 million from the previous $405-415 million. While CEO Matt Trerotola emphasized the company's strong start to 2025, with first-quarter revenues and margins exceeding expectations, the revised profit guidance has clearly overshadowed these positive aspects in investors' minds.