Foothill Ranch-based Skilled Healthcare Group Inc.’s shares tumbled in early trading this morning, a day after releasing second-quarter earnings that fell short of analysts’ estimates.
The nursing home operator’s shares were down 16% to a market value of $210 million in midday New York trading.
Skilled posted a profit of $3.4 million in the second quarter, 48% lower than last year’s second quarter and well below analysts’ estimates of $6.1 million.
Second-quarter revenue was down 2% to $213.7 million. Wall Street had expected revenue of $219.6 million.
The company said the results were affected by several factors, including a shift from Medicare to managed care payments and delayed payment resulting from regulatory changes affecting Medicare therapy.
It also said that it cut some jobs in its administrative services unit and expects to save $6 million a year.
Skilled released its financial results on Monday after the market closed.