Cross Country Healthcare, Inc. (NASDAQ:CCRN) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Cross Country Healthcare, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.01 in the quarter versus EPS of $0.00 in the year-earlier quarter.
Revenue: Decreased 12.92% to $110.3 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Cross Country Healthcare, Inc. reported adjusted EPS loss of $0.01 per share. By that measure, the company missed the mean analyst estimate of $0. It missed the average revenue estimate of $111.77 million.
Quoting Management: “I am pleased with the progress of our nurse and allied staffing business in the first quarter that resulted in year-over-year and sequential increases in segment revenue due to higher travel and per diem staffing volume, as well as higher bill rates. In addition, our efforts to restore margin in this segment continue to be effective. Both housing and health insurance costs per hour declined sequentially, which combined with volume and bill rate increases, resulted in a substantial improvement in segment contribution income. Contribution income from this segment was bolstered by the reversal of an accrued professional liability expense of $0.8 million discussed at year-end. The underlying case moved further through the legal system, which has provided greater clarity on our exposure,” said Joseph A. Boshart, Chief Executive Officer of Cross Country Healthcare, Inc. “While our physician staffing business was below expectations in the first quarter, we expect it to grow both year-over-year and sequentially in the second quarter of 2013. Longer term, we believe the Affordable Care Act will enhance growth opportunities for our business beyond those in the current market,” he said.
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