What happened
Poorly received quarterly results and a big leadership change were the twin engines driving AdaptHealth's (AHCO 2.19%) share price down on Tuesday. On those two developments, the healthcare company's share price eroded by more than 6%. That performance was notably worse than that of the S&P 500 index, which dipped by a comparatively light 0.5%.
So what
AdaptHealth, which focuses on at-home healthcare solutions and services, earned nearly $755 million in revenue in its first quarter. That bettered the first quarter 2022 result by more than 5%. But the company's diluted net income line went very much in the opposite direction, flipping to a loss of $7.5 million ($0.06 per share) from a profit of almost $11.5 million.
Neither headline number reached the average analyst estimate. Collectively, prognosticators were modeling slightly over $758 million on the top line and a per-share profit of $0.11.
AdaptHealth saw growth in its sleep category and benefited from strength in its respiratory business now that we're no longer in the thick of the coronavirus pandemic. On the other hand, the company's diabetes category declined in the quarter.
In the earnings release, AdaptHealth said it is adapting a cost management program "aimed at revamping our supply chain infrastructure, rationalizing our real estate footprint, and restructuring our operating model to pre-pandemic levels."
Now what
Another major move is occurring with AdaptHealth. Concurrent with its earnings release, the company announced that CEO Stephen Griggs would step down from his post, effective June 30. It did not provide any reasons behind this but did say that its board of directors is actively seeking a successor in collaboration with an unnamed executive search firm.
