Accretive Health delays 4Q earnings report
Accretive Health shares plunge on delay in 4Q report as it examines revenue recording methods
CHICAGO (AP) -- Shares of Accretive Health Inc. plummeted more than 19 percent in after-hours trading Tuesday , after the company said it postpone the release of its fourth-quarter and 2012 results because it is reviewing the way it records revenue.
The company, which helps hospitals manage their revenue, was scheduled to release its results Wednesday.
Accretive Health said it is evaluating the way it records revenue from revenue cycle management agreements, and it may have to restate earnings for previous periods. The company said the restatements will not affect the total revenue it recognizes over the life of its contracts.
The company withdrew its annual guidance, which called for adjusted net income of 23 to 27 cents per share and net service revenue of $948 million to $980 million.
Analysts expected net income of 25 cents per share and $950.8 million in revenue for the year and earnings of 9 cents per share and $237.3 million in revenue for the fourth quarter, according to FactSet.
Accretive Health shares fell $2.33, or 19.2 percent, to $9.78 in after-hours trading.
