Shares of R1 RCM (NASDAQ:RCM) had tumbled 12.6% as of 11:42 a.m. EDT on Tuesday. The decline came after the healthcare technology company announced its first-quarter results before the market opened.
R1 RCM reported revenue of $342.6 million in the first quarter. That result topped the consensus analyst estimate of $339.2 million. However, the company's net loss of $2.37 per diluted share was a lot worse than its earnings of $0.05 per diluted share in the prior-year period. It also came in well below the average analyst estimate of a net loss of $0.03 per share.
There's obviously a disconnect between what analysts projected for the first quarter and what the company anticipated. CFO Rachel Wilson said, "We are pleased to report another strong quarter, with results ahead of our expectations."
While R1 RCM's first-quarter results were the main reason for the healthcare stock falling today, it didn't help that the overall stock market slid. This broader market pullback likely made the stock's decline worse than it would have otherwise been.
R1 RCM expects to deliver solid revenue growth for full-year 2021. The company projects revenue will be between $1.41 billion and $1.46 billion, with the midpoint of that range reflecting a year-over-year increase of 13%.