Shares of Skilled Healthcare Group Inc. fell to an all-time low Wednesday after the nursing facility operator said it will restate more than three years of results, and cut its annual profit forecast because of the restatement costs.
The Foothill Ranch, Calif.-based company said it expects to take a charge of $8 million to $9 million, or about 6 cents per share, because it understated its accounts receivables. It lowered its 2009 profit forecast to a range of $1.02 to $1.08 per share from a prior range of $1.08 to $1.14 per share.
The company said a former employee improperly dated accounts receivables between 2006 and March 31 of this year.
In midday trading, shares of Skilled Healthcare dropped 74 cents, or 8.9 percent, to $7.60. They earlier traded as low as $7.46, their lowest price since the stock began trading in May 2007.
Morgan Keegan analyst Robert Mains said the announcement does not change his view that Skilled Healthcare stock has become inexpensive due to investor concerns about Medicare reimbursement rates. He cut his profit estimate to $1 per share from $1.08 per share, but kept an "Outperform" rating.
source: yahoo
The Foothill Ranch, Calif.-based company said it expects to take a charge of $8 million to $9 million, or about 6 cents per share, because it understated its accounts receivables. It lowered its 2009 profit forecast to a range of $1.02 to $1.08 per share from a prior range of $1.08 to $1.14 per share.
The company said a former employee improperly dated accounts receivables between 2006 and March 31 of this year.
In midday trading, shares of Skilled Healthcare dropped 74 cents, or 8.9 percent, to $7.60. They earlier traded as low as $7.46, their lowest price since the stock began trading in May 2007.
Morgan Keegan analyst Robert Mains said the announcement does not change his view that Skilled Healthcare stock has become inexpensive due to investor concerns about Medicare reimbursement rates. He cut his profit estimate to $1 per share from $1.08 per share, but kept an "Outperform" rating.
source: yahoo
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