Providence Service sees 2018 margins below prior outlook
In a 2018 operational update included in an investor presentation posted by Providence Service in connection with the 18th Annual CJS Securities "New Ideas" Conference, the company stated that its NET Services business and Matrix Investment units are currently experiencing some of the impacts of short-term volatility in financial performance and other headwinds, "which will lead to 2018 full year margins below our previous outlook." Providence Service said that although NET Services is still on track to achieve 3%-5% revenue growth in 2018, margins are being unfavorably impacted by higher than expected transportation costs on a per trip basis. In Matrix, the acquisition thesis for HealthFair "remains intact," but revenue growth for the mobile assessment business is now expected to be lower than originally planned due to a slower ramp up of contracts, the slides added. Providence also stated: "However, our multiyear outlook and confidence in the long-term strength of NET Services and our Matrix investment remains unchanged."