Accretive Health Inc. said Wednesday its profit more than doubled in the third quarter, but the company cut its annual profit and revenue forecasts because several new contracts were signed later than it had expected.
Shares of Accretive Health, which helps hospital systems manage their revenue cycles, fell $3.26, or 11.4 percent, to $25.36 in afternoon trading.
The company reported a profit of $7.3 million, or 7 cents per share, up from a year-ago profit of $2.9 million, or 3 cents per share. Accretive Health said it earned 11 cents per share if one-time costs are excluded. Its revenue grew to 38 percent, $218.9 million from $158.4 million.
Analysts expected the company to report income of 12 cents per share and $222 million in revenue, according to FactSet.
The Chicago company said its base fee revenue rose 30 percent to $177.3 million, and incentive revenue grew 56 percent to $29.7 million. Other service revenue rose to $11.9 million from $3.3 million.
Accretive Health said it signed more new business than it originally expected, but several contracts were signed later in the year than planned. As a result, it cut its full-year profit forecast to a range of 42 cents per share to 44 cents per share from 42 to 45 cents per share. It now forecasts $820 million to $835 million in revenue rather than $835 million to $850 million.
Analysts were expecting a profit of 45 cents per share on revenue of $824.6 million on average.