Bearish stock to watch: Change Healthcare Inc (NASDAQ: CHNG)

Free $100 Forex No-Deposit Bonus

Change Healthcare Inc (NASDAQ: CHNG) stock lost over 10.2% in the pre-market session of June 4th, 2020 (Source: Google finance) after the company posted lower than expected results for the fourth quarter of FY 20. For the first quarter of fiscal 2021, the company expects Solutions revenue to be in the range of $595 million to $620 million, Adjusted EBITDA to be in the range of $160 million to $175 million and Adjusted EPS to be in the range of $0.14 – $0.18 per share. Net cash provided by operating activities and free cash flow were affected by pass-thru funds that the company get from certain pharmaceutical industry participants in advance of the obligation to remit these funds to participating retail pharmacies. Such pass-thru funds were $21.7 million for the fiscal year 2020 and $3 million for the fiscal year 2019.

The company has generated net cash provided by operating activities of $593.3 million for the fiscal year 2020, an increase of 106.2% from $287.7 million for the fiscal year 2019. Free cash flow increased by 721.8% to $334.7 million for the year ended March 31, 2020 from $40.7 million for the fiscal year ended March 31, 2019. The company has the year 2020 with approximately $407.7 million of cash, cash equivalents, and restricted cash and about $5,118.0 million of total debt. During the fourth quarter, the company had also borrowed $250 million from its revolving credit facility to have access to additional liquidity in an uncertain macro environment. Subsequent to the quarter, the Company had issued $325.0 million of 5.75% Senior Unsecured Notes due 2025 according to the same terms as the existing $1,000.0 million Senior Notes.

CHNG in the fourth quarter of FY 20 has reported the adjusted earnings per share of 42 cents, beating the analysts’ estimates for the adjusted earnings per share of 37 cents, according to Zacks Investment Research. The company had reported the adjusted revenue of $843.4 million in the fourth quarter of FY 20, beating the analysts’ estimates for revenue of $839.5 billion.

On the other hand, during the fourth quarter, the company has completed the acquisition of PDX for a purchase price of $208 million, completed the acquisition of eRx Network for a purchase price of $212.9 million plus cash on the balance sheet and completed the sale of Connected Analytics for total consideration of $55 million.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.