BioReference Laboratories Inc. plummeted the most in two years after providing preliminary fiscal fourth-quarter earnings that were below analysts’ estimates on lower reimbursements for its diagnostic services.
BioReference, which calls itself the fourth-largest full-service U.S. laboratory, dropped 22 percent to $29.55 at 4 p.m. New York time, in the biggest decrease since November 2011. The shares increased 3.2 percent this year through today.
Earnings for the three months ended Oct. 31 are expected to be about 40 cents a share on revenue of $192 million, Elmwood Park, New Jersey-based BioReference said in a statement today. Analysts had expected 55 cents a share on $189 million in sales. Revenue and net income may rise 10 percent each in fiscal 2014, the company said.
‘There is a disconnect between the innovative, clinically relevant services our industry offers and the decreasing value placed on them by the payer community as demonstrated by changes in reimbursement rates and conditions,’’ Marc Grodman, chief executive officer, said in the statement.
BioReference plans to release full results on Dec. 19.