What did Capitol Health (CAJ) Shares tumble today?
CAJ -7.14%; the diagnostic imaging company was out with guidance ahead of the end of the financial year which showed margins being squeezed more than expected. Revenue for Fy23 is expected to come in at $208m, largely in line with consensus, however, EBITDA has been guided to $39.3-40m, around 7.5% below expectations. The company said it had held on to staff numbers despite weaker volumes on anticipation of improving demand, signs of which have come through late in the 4Q. while not improving the current year’s numbers considerably, this should help build momentum into FY24. Also assisting the company is a bump to Medicare indexation which will increase payments for their services. While a disappointing set of numbers, the commentary suggests a turning point has been reached for the company.
