ModivCare Analysts Cut Their Forecasts After Q4 Results
Portfolio Pulse from Avi Kapoor
ModivCare Inc. (NASDAQ:MODV) reported Q4 earnings above market expectations but provided a weaker sales forecast for Q1, leading to a 2.8% drop in its shares. The company's adjusted earnings were $1.29 per share, with sales of $702.83 million, surpassing estimates. However, its Q1 revenue forecast of $650 million to $700 million falls short of the expected $702.031 million. Analysts from Deutsche Bank and Jefferies have subsequently lowered their price targets and downgraded the stock.
February 23, 2024 | 12:32 pm
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ModivCare Inc. reported higher than expected Q4 earnings but issued a weaker Q1 sales forecast, leading to a share price drop and analyst downgrades.
The negative short-term impact on MODV's stock price is due to the weaker than expected sales forecast for Q1, which has led to a decrease in investor confidence. This is evidenced by the immediate 2.8% drop in share price following the announcement. Additionally, the downgrades and lowered price targets by analysts from Deutsche Bank and Jefferies further contribute to the negative outlook, indicating a consensus among market experts on the stock's underperformance.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100