NEW YORK (TheStreet) -- Shares of Adeptus Health (ADPT) were tumbling 63.04% to $9.93 on heavy trading volume late Wednesday morning after the company reported weaker-than-anticipated results for the 2016 third quarter.
Following yesterday's closing bell, the Lewisville, TX-based emergency health care company reported adjusted earnings of 6 cents per share, sharply below the FactSet consensus of 54 cents per share.
Revenue of $85.4 million fell short of Wall Street's projections of $90.0 million, according to FactSet.
The company also reduced its forecast for full-year EBITDA to between $70 million and $80 million vs. its prior view of $110 million to $115 million. Analysts surveyed by FactSet expect EBITDA of $88 million for 2016.
CEO Thomas Hall said that the results were "disappointing due to weaker than expected volumes in non-hospital outpatient department markets, collection issues associated with our third party billing agent and higher costs associated with the opening of three hospitals in the second half of the year."
Bank of America/Merrill Lynch downgraded Adeptus shares by two notches to "underperform" from "buy" earlier today, the Fly reports. The firm also slashed its price target to $17 from $60, citing a lack of visibility.
Adeptus' problems won't be solved quickly, according to BofA/Merrill Lynch.
Jefferies also cut its rating on the stock to "hold" from "buy" and reduced its price target to $13 from $77 today. The firm said that it is concerned about Adeptus' balance sheet and cash flows.
Additionally, Stephens lowered its rating to "equal weight" from "overweight" and decreased its price target $19 from $63, noting that the company must "right itself." But this won't happen within the upcoming quarters, the firm estimates, according to the Fly.