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: In a strange trading day, shares of Accretive Health (NYS: AH) fell 11% when the market opened, jumped to slightly higher on the day, and are now down about 5%.
So what: Second-quarter earnings results were released this morning, and adjusted earnings per share of $0.12 soundly beat the $0.10 analysts expected. But there was concern when revenue was only $183.6 million, below the $203.9 that was expected.
Now what: In the company's full-year guidance, management said it expected revenue to be between $835 million and $850 million, with earnings per share between $0.42 and $0.45. Revenue was at the bottom end of expectations, and earnings are at the top end, so the news is a little mixed. Even at the high end of expectations, shares are trading at 60 times 2011 earnings estimates -- a price that's a little too expensive to get this Fool excited today.
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At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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