Please ensure Javascript is enabled for purposes of website accessibility

Why Nobilis Health Is Getting Clobbered by 21.8% Today

By Todd Campbell - May 12, 2016 at 2:47PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The disclosure of a delay in filing its first quarter financials with the SEC is sending shares reeling.

What: After issuing a press release earlier Thursday saying it is delaying the filing of its first quarter financials while it awaits independent insight into two non-cash accounting matters, shares of Nobilis Health Corp. (HLTH) are down 21.8% at 2:15 p.m. EST Thursday. 

So what: On Tuesday, the full-service healthcare development and management company updated investors on its first quarter financials and this morning, management reported that it is delaying the filing of its quarterly 10-Q with the SEC until it gets insight on what the company describes as "two narrow, non-cash accounting entries."

In Q1, Nobilis Health indicated that spending on technology and infrastructure resulted in the company losing $5 million. That loss came even as revenue increased 35% to $51.3 million. The first quarter loss of $0.07 per share was $0.08 worse than industry watchers were hoping for. The company also cited headwinds associated with "the impact of significant legal and accounting expenses related to the October short attack" as a reason for the lackluster report.

Investors responded to the first quarter financials by knocking shares down sharply, something that was repeated Thursday when the company, which currently owns or manages outpatient healthcare facilities, said it was going to need a bit more time to officially close the books on the quarter.

HLTH Price Chart

HLTH Price data by YCharts

Now what: A disappointing bottom line isn't necessarily a harbinger of doom, but I tend to get a bit nervous when non-operational factors, such as responding to a "short attack" get highlighted by management as a reason for them. 

Today's revelation of a delay in filing financials also isn't overly concerning to me, at least not yet. But it does create uncertainty and that's never something that investors applaud. Given the company's tepid first quarter performance and the news of this delay, investors should probably focus on other investing ideas rather than attempt to bargain hunt this stock. At least until that 10-Q gets filed.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Nobilis Health Corp. Stock Quote
Nobilis Health Corp.

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.