After Envision Healthcare hits 52-week low, investment analysts sour — 5 insights

According to a Nasdaq report, analysts are souring on Envision Healthcare after the stock hit a 52-week low of $26.34 Nov. 6.

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Here’s what you should know:

1. Envision hit the low after disappointing third quarter results, causing correlating yearly guidance to be cut.

2. Envision missed Zacks’ quarterly estimates by 16.1 percent. Hurricanes Harvey and Irma wreaked havoc on Envision’s physician services and ambulatory services operations, reducing revenues by a combined $22 million.

3. Nasdaq claims Envision’s struggles began after merging with AmSurg. Nasdaq said soft industry volumes and weak execution “plagued results.” Since the merger, Envision shares have dropped 60 percent.

4. Analysts are concerned the company continues to have increased operating expenses. Increased salary and benefit expenses have surpassed revenue growth rate for two consecutive quarters.

5. Zacks issued a “sell” ranking to Envision in its latest guidance.

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