Cross Country Healthcare (NASDAQ:CCRN) Releases Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Cross Country Healthcare reported quarterly EPS of -$0.03, beating analysts’ expectations of -$0.05, and revenue of $241.06 million, above estimates of $236.84 million.
• The stock traded higher after the report, rising to $13.18, with elevated trading volume and a market cap of about $424.4 million.
• Investor attention is also centered on the company’s agreed all-cash acquisition by Knox Lane, which values shares at $13.25 and appears to be limiting further upside.

Cross Country Healthcare (NASDAQ:CCRN - Get Free Report) released its earnings results on Thursday. The business services provider reported ($0.03) earnings per share for the quarter, topping analysts' consensus estimates of ($0.05) by $0.02, FiscalAI reports. The firm had revenue of $241.06 million during the quarter, compared to analyst estimates of $236.84 million. Cross Country Healthcare had a negative net margin of 9.84% and a negative return on equity of 0.71%.

Cross Country Healthcare Stock Performance

CCRN traded up $0.09 during midday trading on Friday, hitting $13.18. The company had a trading volume of 1,809,683 shares, compared to its average volume of 620,874. The company has a market capitalization of $424.40 million, a PE ratio of -4.32, a P/E/G ratio of 13.78 and a beta of 0.35. Cross Country Healthcare has a twelve month low of $7.43 and a twelve month high of $14.99. The firm's 50-day simple moving average is $9.69 and its 200-day simple moving average is $9.66.

More Cross Country Healthcare News

Here are the key news stories impacting Cross Country Healthcare this week:

• Positive Sentiment: Cross Country Healthcare agreed to be acquired by Knox Lane in an all-cash transaction, giving shareholders a fixed buyout price of $13.25 per share and supporting the stock. Cross Country Healthcare to be Acquired by Knox Lane in All-Cash Transaction Valued at $437 Million
• Positive Sentiment: The company’s Q1 results beat Wall Street expectations, with a smaller-than-expected loss of $0.03 per share and revenue of $241.06 million, which may have added some support to sentiment. Cross Country Healthcare (CCRN) Reports Q1 Loss, Beats Revenue Estimates
• Neutral Sentiment: Benchmark reaffirmed its hold rating on CCRN, while Wedbush downgraded the stock to hold and trimmed its price target to $13.25, reflecting limited upside versus the deal price. Benchmark Reaffirms Hold Rating
• Neutral Sentiment: Some commentary suggested investors may want to cash out after the merger announcement, but this is largely a reaction to the acquisition news rather than a separate operating development. Cross Country Healthcare: Time To Cash Out After A New Merger

Hedge Funds Weigh In On Cross Country Healthcare

Several large investors have recently made changes to their positions in the company. Alliancebernstein L.P. lifted its stake in shares of Cross Country Healthcare by 4.0% during the second quarter. Alliancebernstein L.P. now owns 2,438,282 shares of the business services provider's stock valued at $31,820,000 after acquiring an additional 94,798 shares during the period. Goldman Sachs Group Inc. lifted its stake in shares of Cross Country Healthcare by 56.9% during the first quarter. Goldman Sachs Group Inc. now owns 1,095,178 shares of the business services provider's stock valued at $16,307,000 after acquiring an additional 397,216 shares during the period. Quinn Opportunity Partners LLC acquired a new position in shares of Cross Country Healthcare during the fourth quarter valued at $8,470,000. Charles Schwab Investment Management Inc. lifted its stake in shares of Cross Country Healthcare by 28.0% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 969,458 shares of the business services provider's stock valued at $7,853,000 after acquiring an additional 211,925 shares during the period. Finally, Geode Capital Management LLC lifted its stake in shares of Cross Country Healthcare by 1.7% during the fourth quarter. Geode Capital Management LLC now owns 893,620 shares of the business services provider's stock valued at $7,240,000 after acquiring an additional 14,733 shares during the period. Institutional investors and hedge funds own 96.03% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the stock. Wedbush downgraded shares of Cross Country Healthcare from an "outperform" rating to a "hold" rating and lowered their price objective for the stock from $15.00 to $13.25 in a research note on Thursday. Cross Research set a $14.00 price objective on Cross Country Healthcare in a research note on Thursday, March 5th. Citigroup downgraded Cross Country Healthcare from a "market outperform" rating to a "market perform" rating in a report on Thursday. Benchmark reissued a "hold" rating on shares of Cross Country Healthcare in a report on Friday. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Cross Country Healthcare in a report on Friday, March 27th. One research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $12.31.

Cross Country Healthcare Company Profile

Cross Country Healthcare, Inc, headquartered in Boca Raton, Florida, is a leading provider of healthcare workforce solutions in the United States. The company specializes in the recruitment, placement and management of nursing and allied health professionals on both a travel and permanent basis. Through its integrated platform, Cross Country Healthcare serves hospitals, health systems, and long-term care facilities by matching qualified clinical talent with patient care needs across diverse care settings.

The company's core service offerings include travel nurse and allied health staffing, per diem staffing, permanent placement services, and managed services programs.

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