On Friday, February 22, Diplomat Pharmacy Inc. (NYSE:DPLO) plunged on the NYSE after the Flint, Michigan-based company said it’s not going to release its Q4 results on the scheduled date.
The company has postponed the release by roughly three weeks. On the same day, Bronstein, Gewirtz & Grossman, LLC announced an investigation into the company. The market did not take either piece of news well, sending the DPLO stock down more than 50%.
DPLO Stock Hits Record Low Today
Diplomat Pharmacy, a specialty pharmacy and infusion services provider, was going to release its Q4 results on February 25th, but now it won’t be out for another three weeks. This is because the company reportedly needs to record an impairment charge. This charge is related to the company’s PBM business, as well as to Diplomat Pharmacy’s 2017 acquisitions of LDI and NPS.
In premarket trade, DPLO shares fell 20% on the news. At market close, according to Yahoo Finance, DPLO stock was trading at $5.87, which means it closed down 56.39%. The DPLO stock has tumbled more than 40% over the past 12 months.
Many investors are disappointed with the delay. However, Diplomat Pharmacy did recognize that it still believes 2018 revenue will be between $5.5 billion to $5.6 billion. With the delay, it is important for investors to keep an eye on the direction of the DPLO stock, especially the direction it takes on February 25th, the day the results were scheduled for release.
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For Those Who Don’t Know
Diplomat Pharmacy is involved in the United States healthcare sector, offering several pharmacy solutions and rendering clinical services. For revenue, the company receives the majority of it from prescription US drug sales.
Are you disappointed that the Diplomat Pharmacy Q4 results won’t be coming out on February 25th like they were supposed to? Let us know in the comments below.
Featured image: DepositPhotos © Alex011973
