HMS Holdings Shares Plunged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of HMS Holdings (NAS: HMSY) fell more than 15% in early trading after the company reported decent Q3 results but reduced its fourth-quarter revenue outlook.
So what: Third-quarter revenue climbed 15% to $92.4 million as profit improved 31% to $0.17. Analysts were calling for $0.16 in earnings on $96.76 million in revenue, Bloomberg reports.
Now what: Color me surprised. If anything, given all the back-and-forth over health-care legislation, you'd think HMS services for cutting costs and waste from government and private health-care plans would be in high demand. Apparently that's not the case. Do you agree? Would you buy shares at current prices? Please weigh in using the comments box below.
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