Soleil Securities Downgrades Psychiatric Solutions (PSYS) to Hold; Lowers PT & Estimates
PSYS Hot Sheet
Rating Summary:0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Soleil Securities downgrades Psychiatric Solutions (Nasdaq: PSYS) from Buy to Hold. Price target dropped from $33 to $22.
Soleil analyst says, "After the market close, Psychiatric Solutions posted Q3 EPS of $0.50, up modestly from $0.49 a year ago. Results were $0.06 below both our and the consensus estimates. We are reducing our rating to Hold, our '09E to $2.14 and '10E to $2.20...The weaker than anticipated financial results were driven by a number of factors. First, the company was negatively impacted by an increase in charity care stemming from adult Medicaid admissions for which the relevant states provided no reimbursement. Second, a small managed care business that PSYS owns in Puerto Rico saw a significant increase in medical costs (appears to have cost the company about a penny in EPS for the quarter, but should not occur again). Third, the sale of the EAP business early in the quarter cost the company approximately two cents in EPS. Finally, management noted that the timing of the Labor Day holiday worked against the company this year in that it caused schools to open at the latest possible moment."
To see more analyst ratings on PSYS Click Here.
Psychiatric Solutions, Inc. provides inpatient behavioral health care services in the United States.
Soleil analyst says, "After the market close, Psychiatric Solutions posted Q3 EPS of $0.50, up modestly from $0.49 a year ago. Results were $0.06 below both our and the consensus estimates. We are reducing our rating to Hold, our '09E to $2.14 and '10E to $2.20...The weaker than anticipated financial results were driven by a number of factors. First, the company was negatively impacted by an increase in charity care stemming from adult Medicaid admissions for which the relevant states provided no reimbursement. Second, a small managed care business that PSYS owns in Puerto Rico saw a significant increase in medical costs (appears to have cost the company about a penny in EPS for the quarter, but should not occur again). Third, the sale of the EAP business early in the quarter cost the company approximately two cents in EPS. Finally, management noted that the timing of the Labor Day holiday worked against the company this year in that it caused schools to open at the latest possible moment."
To see more analyst ratings on PSYS Click Here.
Psychiatric Solutions, Inc. provides inpatient behavioral health care services in the United States.
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