ModivCare (MODV) Reports Q2 Loss, Misses Revenue Estimates

Core Insights - ModivCare reported a quarterly loss of $0.03 per share, significantly missing the Zacks Consensus Estimate of $0.81, and a stark decline from earnings of $1.47 per share a year ago, resulting in an earnings surprise of -103.70% [1] - The company posted revenues of $698.3 million for the quarter ended June 2024, which was 0.81% below the Zacks Consensus Estimate and a decrease from $701.74 million in the same quarter last year [2] - ModivCare shares have declined approximately 54.6% year-to-date, contrasting with the S&P 500's gain of 9.9% [3] Earnings Outlook - The future performance of ModivCare's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - Current consensus EPS estimate for the upcoming quarter is $1.30 on revenues of $722.54 million, and for the current fiscal year, it is $3.95 on revenues of $2.84 billion [7] Industry Context - The Medical Services industry, to which ModivCare belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact ModivCare's stock performance [5][6]