Air Methods Earnings: Here’s Why the Stock is Down Now

Air Methods Corp. (NASDAQ:AIRM) 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. Shares are down 0.02%.

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Air Methods Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.15 in the quarter versus EPS of $0.32 in the year-earlier quarter.

Revenue: Decreased 6.07% to $179.22 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Air Methods Corp. reported adjusted EPS loss of $0.15 per share. By that measure, the company missed the mean analyst estimate of $-0.07. It missed the average revenue estimate of $187.53 million.

Quoting Management: Aaron Todd, CEO, stated, “As previously disclosed, we believe a greater severity in weather and weaker payer mix had a significant influence on our first quarter results. In addition, the lower flight volumes did not translate into lower maintenance expense, as there is often a delay in the expense benefit associated with decreased flight activity. Once weather moderates during the spring and summer months, we will be better able to isolate whether weak demand and payer mix were solely weather-related or reflect other factors.”

Key Stats (on next page)…

Revenue decreased 17.12% from $216.23 million in the previous quarter. EPS decreased to $-0.15 in the quarter versus EPS of $0.55 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.71 to a profit $0.67. For the current year, the average estimate has moved down from a profit of $2.38 to a profit of $2.08 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)