Stock in HCIA Inc. recovered yesterday after the Baltimore health data company said it will meet analysts' expectations for earnings for the quarter.
The stock closed at $18.25 a share, up $3.125 for the day. On Thursday, HCIA shares fell by $3, or 17 percent, to $15.125.
H. Bernard Dorshow, a senior analyst with the Chapman Co., said the price fell on fears of poor earnings. "There were a number of health care information companies that have been the darlings of the market that came in short of expectations," he said.
Also, Dorshow said, volatility in the market was prompting some investors to move out of stocks in smaller companies like HCIA.
The company, which said its announcement was prompted by "unusual trading activity" in its stock, said it expects to report earnings of 21 cents a share for the first quarter, in line with projections.
Its quarterly report will be issued after the close of business Wednesday.
Dorshow, who issued a report two weeks ago affirming a "buy" recommendation, said core revenues were up and new orders for the company were "strong."
Pub Date: 4/19/97