Weak Guidance For Q1 May Reduce Excitement For Cross Country Healthcare (CCRN)

Analysts at SunTrust Robinson Humphrey maintain their "buy" rating on Cross Country Healthcare Inc (NASDAQ: CCRN). The target price for CCRN is set to $13.

CCRN posted higher-than-expected Q4 EPS, driven by higher-than-anticipated nurse and allied revenues, and gross margin improvement. Despite posting better-than-consensus revenues for Q4, Cross Country Healthcare issued disappointing revenue guidance for Q1. SunTrust Robinson Humphrey expects weak guidance to mitigate some of the excitement in the stock.

SunTrust Robinson Humphrey said CCRN’s gross margins “were up about 180 basis points from 3Q09’s 27.3%. While management commentary was limited, we expect both mix shift to physician and cost controls played a role.”

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