MedCath dips on Q4 profit plunge
MedCath Corp. (Nasdaq: MDTH) shares are dipping after the health-care provider reported its fourth-quarter earnings plunged to $0.9 million, or $0.04 per share, widely missing analyst estimates of $0.31 per share and down from $10.9 million, or $0.55 per share, a year earlier. The earnings decline was caused by a reduction in ownership of a hospital and a subsequent change in accounting of that unit. As a result of the accounting change, MedCath did not account for the hospital in its quarterly net revenue.
Under the revised accounting rules, the Charlotte, N.C.-based company’s fourth-quarter revenue declined 11% to $158.6 million, below analyst estimates of $169.3 million and compared with $177.4 million a year earlier.
"Our fourth quarter brings to close a very successful fiscal 2007," CEO O. Edwin French said in a statement. "We were able to accomplish many of our strategic and financial objectives during the year, delivering overall solid revenue and EBITDA growth. We believe we have put in place the foundation for a successful fiscal 2008."
In morning trading, MDTH shares are down 16.72%, or $4.43, at $22.07. Over the last 52 weeks, shares have ranged from $21.64 to $34.61.
