Here's Why Kindred Healthcare, Inc. Shares Skyrocketed as Much as 16%
Shares of Kindred Healthcare (NYSE: KND), a provider of healthcare services via hospitals, home health, and rehabilitation units, surged as much as 16% during Thursday's trading session after the company provided an update on its adverse earnings impact from hurricanes Irma and Harvey. As you can probably surmise from the move higher, Wall Street was pleased with the small magnitude of impact on the company's bottom-line results.
According to a press release from Kindred after the closing bell on Wednesday, the company announced the expectation of a one-time pre-tax earnings impact of $20 million during the third quarter. Kindred CEO Benjamin Breier commented in the press release that approximately 16% of the company's consolidated revenue was initially at risk because of these two storms. Kindred has already begun pursuing claims under its business-interruption insurance coverage, which may help cover losses incurred from Irma and Harvey.
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Source: Fool.com
