Pediatrix Medical Group (PMG) shares experienced a significant drop of 16% to $9.39 following the release of their third-quarter earnings report, which fell below expectations. The stock hit its lowest point in the past 52 weeks, reaching $9.23 during the session, and has seen a decline of 50% in the last year.
For the third quarter, PMG reported earnings of $21.4 million, or 26 cents a share, compared to $29.2 million, or 37 cents a share, in the same period last year. This represents a notable decrease that caught analysts off guard; they were anticipating earnings of $32.6 million, or 40 cents a share.
Despite falling short on earnings, PMG’s revenue for the quarter came in at $506.6 million, slightly higher than last year’s $489.9 million and in line with analysts’ expectations of $507.6 million.
In response to these results, Pediatrix Medical Group acknowledged that the third quarter presented unexpected challenges, with lower patient volumes and continued growth in practice-level costs. As of September 30th, the company held $21.2 million in cash and cash equivalents, witnessing significant growth from $9.8 million at the end of 2022. Additionally, PMG reported net accounts receivable of $277.4 million.
The future remains uncertain for Pediatrix Medical Group as they navigate the obstacles posed by their recent earnings performance. Market observers and shareholders will be closely monitoring the company’s strategic initiatives moving forward.