Overview
Cross Country Q3 revenue declines 21% yr/yr, missing analyst expectations
Adjusted EPS for Q3 misses consensus, reflecting operational challenges
Company reports strong Homecare Staffing performance, with revenue up 29% yr/yr
Outlook
Company will not provide forward-looking guidance due to pending Aya merger
Result Drivers
HOMECARE STAFFING - Co reports strong performance in Homecare Staffing with revenue growing over 29% yr/yr
SG&A EXPENSES - Sequential decline in SG&A expenses due to leveraging low-cost center in India
CASH FLOW - Positive cash flow from operations of $20 mln supports investment in technology platforms
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $250.05 mln | $270.75 mln (6 Analysts) |
Q3 Adjusted EPS | Miss | $0.03 | $0.04 (6 Analysts) |
Q3 EPS | -$0.15 | ||
Q3 Net Income | -$4.77 mln | ||
Q3 Adjusted EBITDA | Miss | $6.52 mln | $7.51 mln (6 Analysts) |
Q3 Gross Margin | 20.40% | ||
Q3 Adjusted EBITDA Margin | 2.6% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the employment services peer group is "buy."
Wall Street's median 12-month price target for Cross Country Healthcare Inc is $18.61, about 33.2% above its November 11 closing price of $12.43
The stock recently traded at 52 times the next 12-month earnings vs. a P/E of 39 three months ago
Press Release: ID:nBw31jrRXa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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