Yesterday morning, ATIP shareholders woke up to some very unwelcome news. Driven by staffing issues and competition for labor, ATIP was slashing their full year guidance. Revenue was cut by ~10% (from $731m to ~$655m), while EBITDA was cut by ~45% (from $119m to ~$65m). As a result of the lower guidance, the company took a big goodwill write off. The stock was smashed in response to the weak earnings / guide; it closed last week at ~$8.34, and as I write this it is trading just a hair below $4/share. Despite the dramatic slide in the stock, analysts tripped over themselves to cut their price targets and recommendations, as they clearly believe there are more “shoes” (i.e. bad news) to drop here.
To me, these are temporary hiring and inflation issues. Huge growing market, aging population and highly profitable. Oppt to continue to open locations with FCF while paying down debt. It will be a $12/14/$16 5x in a year. Backing up the truck...
the warrants are 80 cents! That I don't get
To me, these are temporary hiring and inflation issues. Huge growing market, aging population and highly profitable. Oppt to continue to open locations with FCF while paying down debt. It will be a $12/14/$16 5x in a year. Backing up the truck...
Maybe fortress wasn't aware of ATIPs problems. Maybe they're just as surprised as everyone. Maybe they'll sue.