R1 RCM Lowers FY24 Outlook: Projects Revenues Of $2.60B-$2.64B Vs. $2.64B Estimate (Prior View: $2.625B-$2.675B); Sees Adjusted EBITDA Of $625M-$650M (Prior View: $650M-$670M)
Portfolio Pulse from Benzinga Newsdesk
R1 RCM has revised its FY24 financial outlook downwards, attributing the change to the impacts of the Change Healthcare cyberattack. The company now expects lower revenues of $2.60B-$2.64B (down from $2.625B-$2.675B) and adjusted EBITDA of $625M-$650M (down from $650M-$670M), citing issues with collections timing, claims inflows, and meeting performance metrics, alongside increased expenses to support customers.
May 08, 2024 | 11:14 am
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R1 RCM lowers FY24 revenue and adjusted EBITDA forecasts due to the Change Healthcare cyberattack, indicating potential challenges in meeting previous financial targets.
The downward revision in R1 RCM's financial outlook for FY24 is directly attributed to the adverse effects of the Change Healthcare cyberattack. This event has impacted the company's revenue collection timing, claims inflows, and ability to meet key performance metrics, alongside necessitating increased support expenses. These factors are likely to negatively influence investor sentiment and the stock price in the short term, as they indicate operational and financial challenges.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100