Why Gentiva Health Services Shares Flatlined
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 Gentiva Health Services lost over 10% of their value today after the company released an underwhelming earnings report this morning.
So what: Gentiva's third quarter revenue came in at $410.5 million, a 3% year-over-year decline and below the $415.1 million consensus. Wall Street was looking for earnings of $0.22 per share from Gentiva, which swung and missed with an EPS result of just $0.15. Looking forward, Gentiva now expects full-year revenue in the $1.72 billion to $1.74 billion range, which is better than the $1.68 billion consensus. However, its full-year EPS guidance range of $0.90 to $1.00 only hits Wall Street's $0.94 EPS expectation in the middle.
Now what: Gentiva's full-year revenue projection is barely a hair above the $1.68 billion trailing 12-month revenue that it had reported prior to this latest quarter, and the company continues to struggle with profitability on a GAAP basis. This report isn't particularly impressive, and the stock has been stuck in a rut for the past year after a big run-up in 2012. There might be a silver lining here, but you're going to have to dig pretty deep to find it.
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The article Why Gentiva Health Services Shares Flatlined originally appeared on Fool.com.Fool contributor Alex Planes has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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