Boston, MA 03/10/2014 (wallstreetpr) – Cross Country Healthcare, Inc. (NASDAQ:CCRN) was crossing downward after the company announced disappointing results. Yet the company was back gaining Friday. Does that mean investors were able to take the management claim for the truth?
The management said in the earnings release that its fourth quarter earnings were affected by non-cash impairment charges and acquisition cost. And for that reason, it was not possible to turn a profit in the quarter, but even so, the loss was bigger than the one of the previous year, yet investors had expected the company to be more profitable in the quarter.
Figures as they came
Cross Country Healthcare, Inc. (NASDAQ:CCRN) said it suffered $35.2 million loss, reflecting $1.13 per share in the fourth quarter. That compared with loss of $9.5 million or 31 cents per share in the fourth quarter of 2012. The revenue suffered of 2 percent decline to $109.2 million.
In the full-year, revenue was $438.3 million and loss of $34.6 million. The company had $442.6 million in revenue and $42.2 million loss in 2012.
Acquisition
The acquisition that Cross Country Healthcare, Inc. (NASDAQ:CCRN) reported as having affected its fourth quarter earnings involved purchase of On Assignment’s healthcare staffing assets. The deal was worth $28.7 million and acquired unit added revenue of $3.4 million to the company.
The management says
Cross Country Healthcare, Inc. (NASDAQ:CCRN) is not worried that the company reported a bigger loss than was expected. What is there is that the company has done good to lay solid ground for its future growth. Perhaps this is something that was not very clear when the earnings results were freshly released. But it now seems investors have digested the news and are convinced that the management can be believed at this juncture.
Outlook
Moving on, Cross Country Healthcare, Inc. (NASDAQ:CCRN) hopes that it will generate revenue in the range of $119 – $121 million in the first quarter. The company has also promised a slight profit in the quarter.
