Therapy provider Lifestance slumps to record low on wider-than-expected Q3 loss

LifeStance Health

09/11/2021 15:04

** Shares of behavioral healthcare firm  LFST.O  sink 33% to
$8.56, a record low, after posting Q3 results
    ** Co posts loss of 35 cents per share versus estimated loss
of 24 cents per share, according to Refinitiv data
    ** Also, co says it expects full-year revenue at lower end
of its previously guided forecast of $668 mln-$678 mln; analysts
esimate $670 mln - Refinitiv data
    ** Clinician holiday time off to impact revenue projection,
co says in Q3 update, as "supporting employee well-being during
this acutely stressful time as a result of COVID fatigue is
aligned with the company's mission"
    ** Additionally, co said retention rate of its clinicians
was approx. 80%
    ** At least four brokerages cut stock's PTs
    ** Retention rate is stable at 80% vs 87% pre-pandemic, says
Jefferies, but clinicians' burnout/fatigue is evident; brokerage
expects higher rates of paid time off in Q4, and cuts PT to $18
from $31
    ** "For a high growth company in an excess demand sector,
the gap to initial expectations remains wide, and widened
further for FY22" - Jefferies
    ** "We suspect exiting the latest COVID wave could ease the
current pressures over time" - Cowen, cutting PT to $13 from $18
    ** Co made Nasdaq debut in June this year and is backed by
an affiliate of buyout firm TPG  urn:newsml:reuters.com:*:nL3N2NS3SP urn:newsml:reuters.com:*:nL3N2NS3XA
    ** Stock down ~52% from its IPO price 

 (Reporting by Anisha Sircar in Bengaluru)
 ((Anisha.Sircar@thomsonreuters.com;))