Accendra Health Shares Slip on Sales-View Cut, Impending CEO Exit

Dow Jones
Aug 10
 

Accendra Health shares slid after second-quarter revenue fell, the company cut its annual outlook and its CEO said he planned to retire.

The stock fell 33% to $1.83 in premarket trading Monday. Through the prior close, shares were down about 18% this year.

The medical-products company now expects full-year sales to be $2.45 billion to $2.55 billion, down from its previous guidance of $2.55 billion to $2.65 billion.

The lower outlook came as second-quarter sales fell 10% to $613.2 million, missing analysts' forecast of $628.7 million.

Accendra also recorded a second-quarter loss of $89.1 million, or $1.16 a share, compared with a loss of $869.1 million, or $11.30 a share, the year before.

Accendra is trying to recover after a large commercial payor exited. It has reduced expenses related to the payor, and has cut down on debt.

Separately, the company's chief executive, Edward Pesicka, said he plans to retire at the end of this year.

 
 

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