Shares of AdaptHealth (NASDAQ: AHCO) were skyrocketing Tuesday morning, up 29.7% as of 10:56 a.m. ET. That huge gain came after the home medical equipment and supplies provider announced its 2023 fourth-quarter and full-year results before the opening bell.

AdaptHealth reported net revenue in the fourth quarter of $858.2 million, up 10% year over year. The average analysts' estimate was for revenue of $825.4 million. The company posted a net loss in Q4 of $254.5 million, or $1.91 per share. This result was well below the consensus earnings estimate of $0.18 per share.

When companies miss analysts' earnings estimates, their stocks typically don't soar -- they fall. Why did investors react so positively to AdaptHealth's Q4 update? As you might expect, there was more to the story.

Continue reading

Source Fool.com