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Quorum Health stock sinks
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December 14, 1998: 11:06 a.m. ET
Hospital company warns of 2Q and fiscal '99 shortfall, possible quarterly loss
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NEW YORK (CNNfn) - Shares of Quorum Health Group Inc. took a turn for the worse Monday after the hospital chain said late Friday it expects a significant shortfall in second-quarter earnings, and possibly a loss after charges.
Quorum stock (QHGI) plunged 5-21/32, or 33 percent, to 11-9/32 on the Nasdaq Monday morning following the news.
The Brentwood, Tenn., company also said it expects fiscal 1999 earnings to be below earlier expectations of $1.43 to $1.48 per share.
Analysts had expected the company to post earnings of 32 cents per share for the second quarter and $1.43 per share for fiscal 1999, according to First Call consensus estimates.
Quorum blames its financial downturn on payor pressures and poor acquisition performance.
"The combined effect of the factors we have previously discussed has had a greater impact on October and November results than we anticipate[d]," said James E. Dalton, Jr., president and chief executive officer. "Consequently, we no longer expect second- quarter earnings to match last year's."
In the year-ago quarter, Quorum earned 32 cents per diluted share.
The latest second-quarter results are due out Jan. 26.
In response to the earnings warning, four brokerages downgraded Quorum's stock: BT Alex. Brown, CS First Boston, Legg Mason and Stephens Inc. 
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