Unfortunately for its shareholders, the Regis Healthcare Ltd (ASX: REG) share price has continued its post-earnings decline.
Earlier today the aged care centre operator's shares tumbled to a new 52-week low of $3.25. This brought its year-to-date decline to a disappointing 29%.
Why are its shares lower?
Last month Regis released its full-year results which revealed a solid 8% increase in net profit after tax.
Whilst that was positive, its outlook for the year ahead was less so. According to the release, management expects EBITDA to be flat in FY 2018.
While part of this relates to one-off transaction related expenses resulting from the Presbyterian Care acquisition, it also warned that the impact of government changes to funding would be more significant in FY 2018 and FY 2019.
The shares of rival Japara Healthcare Ltd (ASX: JHC) also touched on a 52-week low today.
