AmSurg's headline-grabbing proposal to acquire Knoxville-based TeamHealth overshadowed its strong third-quarter earnings preview, said Avondale Partners analyst Paula Torch in a report late Tuesday.
The company beat analysts' expectations by a wide margin, posting estimated revenues for the third quarter of $650 million compared to $502 million the year prior. Adjusted net earnings were estimated to be $53.0 million compared to $34.6 million in the third quarter of last year. Adjusted earnings per diluted share are expected to be $1.03, compared to 69 cents.
"Given AMSG's stock is currently trading down 5 percent, we believe the merger proposal is overshadowing a strong earnings beat in 3Q," Torch wrote in her report.
AmSurg took its proposal to buy TeamHealth for $7.8 billion public Tuesday. TeamHealth rejected the plan, saying it undervalues the company. AmSurg shares (Ticker: AMSG) closed Tuesday trading down 4 percent at $74.88.
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