What happened
Shares of Agiliti (NYSE: AGTI) were down 13.4% for the week at Friday's close, according to data provided by S&P Global Market Intelligence. The stock closed last week at $6.49 and hit a 52-week low of $5.25 on Thursday. The healthcare company has seen its shares drop by more than 65% so far this year.
So what
The medical equipment and supplies company owns or manages more than 1.2 million units of medical equipment for more than 7,000 national, regional, and local acute care hospitals in the U.S. On Monday, the company announced a CEO transition, and that decision clearly didn't make investors feel any better about the sputtering company.
Agiliti said that CEO Tom Boehning would be leaving and would be replaced by former CEO Tom Leonard, who retired as CEO last March, though Leonard had stayed on as a member of the company's Board of Directors.
What now
The move was seen as not enough of a change by some and perhaps a sign of desperation by others. The company is still growing revenue, but its coming off its first down quarter in net income in two years. In the second quarter, Agiliti said that quarterly revenue was $291 million, up 6.2% year over year. It also said it had a net loss of $4 million compared to net income of $5 million in Q2 of 2022. Boehning at the time blamed the losses on reduced sales from the company's peak-need rental business as well as increased costs for the onboarding of larger contracts. The company also, in the Q2 report, kept its yearly revenue guidance at between $1.16 billion and $1.19 billion, up between 3.5% and 6.3% over last year. However, it lowered its guidance for yearly adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), and yearly adjusted-earnings per share.
