ModivCare Inc. provided a financial update on September 16, 2024, revising its Adjusted EBITDA guidance for fiscal year 2024. The company's new guidance range is $170–$180 million, a reduction from the previously stated range of $185–$195 million.
The primary reason for this revision is attributed to NEMT segment pricing accommodations. These accommodations were made to strategically retain and expand key customer relationships, indicating competitive pressures or contract renegotiations impacting profitability.
This downward adjustment in Adjusted EBITDA guidance suggests a more challenging outlook for the company's core earnings power. Investors typically view such revisions negatively, as they imply a reduction in expected financial performance for the current fiscal year.
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