Why Mednax Tumbled 12% Today Despite Higher Sales
Despite reporting 9.2% year-over-year sales growth, a sharp decline in profitability sent shares in Mednax (NYSE: MD) lower Friday. Shares were down 11.9% at noon EDT.
Mednax is a large provider of neonatal and anesthesia services to medical facilities. In the past, it has relied heavily on acquiring physician practices to fuel growth; however, in the second quarter, acquisitions failed to offset headwinds due to rising costs and a drop-off in organic admissions.
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Source: Fool.com