Investors Dump Air Methods Stock After Its 2Q Warnings

Air Methods Corporation (Nasdaq: AIRM) provided an update to its expectations of earnings and revenue for the second quarter. That meant a warning that they would not be able to meet the Street analysts' expectations. As a result, investors were dumping the stock on Tuesday.Air Methods said that it continued to expect revenues to increase 11.0 percent to about $293 million from $264 million achieved in the prior year period. The company said that the revenue growth was driven mainly by the acquisition of Tri-State Care Flight (TSCF), hospital base conversions, and new community bases.The company expects its net income from continuing operations to be approximately $0.69-$0.71 per share for the second quarter. Last year, it earned net income from continuing operations of $0.69 per share.Street analysts are looking for earnings of $0.90 a share on revenue of $312.28 million for the three-month period.Its CEO, Aaron Todd, reacted to the announcement saying, "Earnings did not grow in-line with revenue due to accelerated clinical and aviation training related to the Tri-State acquisition, lower tourism passengers, and a $0.5 million loss related to the disposition of aircraft. The accelerated Tri-State training resulted in lower in-service rates and volumes in the quarter, which have reversed in July now that training is mostly complete."The company would report its full results on August 4 after the market closes. On Tuesday, the stock fell 8.57 percent following the news.