Healthcare services provider Mednax (NYSE:MD) reported its fourth-quarter and full-year financial results before the market opened on Thursday, and investors were not pleased with the company's update. Mednax's shares are tumbling today as a result and were down by 24.6% as of 12:01 p.m. EST.
Last year, the pandemic had a significant impact on Mednax's business as stay-at-home orders led to a decrease in patient volume. The effect of the outbreak on the company's financial results was evident in its fourth quarter that ended on Dec. 31. Mednax's net revenue for the quarter was $417 million, representing a decrease of a little more than 9% year over year. The company's top line also came up short of the $459.5 million investors were expecting on average.
On the bottom line, Mednax reported an adjusted net income of $21 million -- or $0.25 on a per-share basis, compared with an adjusted net income of $37.1 million and adjusted earnings per share (EPS) of $0.45 it recorded during the year-ago period. The company's bottom line also came up short; on average, analysts had predicted that its adjusted EPS would be $0.36. Mednax's revenue for its full fiscal year 2020 decreased by roughly 2.5% year over year to $1.7 billion, while its adjusted EPS dropped by 32.1% year over year to $0.95.
Mednax will likely continue dealing with significant headwinds for the duration of the pandemic, but once these challenges subside, management is confident that the company will be able to rebound. However, I'd caution against investing in this healthcare stock until it shows consistently strong financial results, which may or may not happen while we are still dealing with the fallout of the outbreak.