American Shared Hospital Services Stock Drops On Disappointing Q4 Earnings – But Retail Sentiment Soars
Company CEO Gary Delanois said that the company is “rapidly evolving” from its traditional leasing model to a direct provider of radiation therapy treatment services to cancer patients.
Shares of American Shared Hospital Services (AMS) traded 4% lower on Friday morning after the company reported fourth-quarter earnings below estimates.
American Shared Hospital Services provides stereotactic radiosurgery equipment and advanced radiation therapy cancer treatment services through its leasing or direct patient care services segments.
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The company reported fourth quarter (Q4) revenue of $9.07 million, marking an increase of 59.2% year-on-year (YoY) and beating an analyst estimate of $7.70 million, according to FinChat data.
Loss per common share came in at $0.20 for the quarter, as compared to earnings per common share of $0.06 reported in the corresponding period of 2023, and lower than an analyst estimate of $0.01 earnings per share.
The company ended 2024 with $11.28 million in cash, cash equivalents, and restricted cash, as compared to $13.81 million as of the end of 2023.
On Friday, American Shared Hospital Services’ CEO Gary Delanois said that the company is “rapidly evolving” from its traditional leasing model to a direct provider of radiation therapy treatment services to cancer patients.
“This transition aligns with our long-term strategy of revenue growth through increased patient volumes rather than equipment utilization. With an expanded business model, increased patient volumes, and operational enhancements, we are positioned for sustainable long-term growth,” he said in a statement.
The CEO added that the company continues implementing strategic initiatives to improve efficiency and maximize profitability.
On Stocktwits, retail sentiment around AMS jumped from ‘neutral’ to ‘extremely bullish’ (100/100) territory while message volume surged from ‘extremely low’ to ‘extremely high’ levels over the past 24 hours.
AMS stock is down over 9% this year and by over 3% over the past 12 months.
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