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What: Shares of physician services provider MEDNAX
So what: MEDNAX announced fourth-quarter results today and investors were underwhelmed. Profit per share of $1.12 for the quarter met analyst estimates, but revenue, which was up 10.6% from the year-ago quarter, was well-shy of expectations. One a same-unit sales basis, the company saw patient volume growth of 1.6%, but a shift toward more services being reimbursed at lower rates by the government left total same-unit sales growth at just 0.2%.
Now what: Of course, disappointment over fourth-quarter results probably had a lesser impact on MEDNAX shares today than the company's outlook for the first quarter. Guidance for first-quarter earnings per share was set at $0.88 to $0.93, easily short of the $0.96 Wall Street was looking for. However, investors can't be too dismayed with the stock; since the beginning of August it's been on a furious tear that has it up 34% even after today's drop.
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