envision lays an egg

It was a tough October for Envision EVHC, the healthcare company based in Nashville, Tennessee. The company is less than a year old and has certainly had its problems.

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Envision is being sued by several investors in a class-action lawsuit. Envision has been questioned on their billing practices, particularly when it comes to emergency room visits.

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Envision cut projections for the current quarter and reported disappointing third-quarter results. In today’s (11.01.17) conference call, Christopher Holden, president and CEO said, “As you are aware in Q3, we experienced an unprecedented combination of natural and other disasters”.

Shares, down 29% over the past 12 months, dropped 31% in after-hours trading to below the $39.66 52-week low set this month.

The hospital company revealed third-quarter net income from continuing operations of $40.7 million, or 33 cents a share, on net revenue of $1.99 billion, up from $822.2 million a year ago, the company claimed earnings of 73 cents a share, down from $1.13 a share a year ago. The company reduced its guidance. The company also announced that its Board of Directors has decided to initiate a full review of a broad range of alternatives to enhance shareholder value.

Shares have already dropped 32.7% so far this year, as the S&P 500 index has increased 14.9%.

Sources for this post:

Market Watch

Seeking Alpha

 

 

Published by mikebertelsen

Global market, trade, and financial news. I keep up to date with what I assess is important.

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