Why HMS Holdings Shares Are Crashing Today
Shares of HMS Holdings (NASDAQ: HMSY) were crashing 19.2% lower as of 11:31 a.m. EDT on Friday. The big decline came after the healthcare management services company reported its third-quarter results before the market opened this morning.
HMS announced Q3 revenue of $146.8 million, down 4.8% year over year and well below the consensus Wall Street revenue estimate of $165.8 million. The company posted Q3 adjusted earnings per share (EPS) of $0.30, down slightly from its adjusted EPS of $0.31 in the prior-year period but better than the average analysts' estimate of $0.28.
What probably bothered investors the most, though, was that HMS lowered its full-year 2019 outlook. The company now expects total revenue will be between $630 million and $640 million. Its previous guidance projected full-year revenue between $650 million and $660 million.
Source Fool.com
