Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of home health company Amedisys
So what: Revenue fell to $373.7 million, from $422.3 million last year, as regulatory changes hit the company harder than expected. Adjusted earnings per share were $0.67, just a penny short of estimates, but revenue and a weak forecast was enough to send shares tumbling.
Now what: For the full year, management expects revenue to be between $1.47 billion and $1.5 billion while earnings should be between $2.20 and $2.40 per share. Both numbers are down significantly from just three months ago when the company gave guidance showing how quickly conditions were deteriorating. I don’t see a lot to be excited about today and would shy away from shares until we get some more clarity about the long-term prospects of the company.
Interested in more info on Amedisys? Add it to your watchlist.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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