Tivity Health (TVTY) fell 45% on Thursday following its fourth quarter earnings release — and truthfully, it could have been worse. TVTY had rallied into the report, gaining 54% from late October lows. Fourth quarter results badly missed Street estimates. 2020 guidance badly disappointed — and is even worse than it looks at first glance.
It's tempting to chalk up the decline to last year's acquisition of Nutrisystem, which looks more disastrous by the day. Certainly, that deal has unfortunately destroyed a staggering amount of shareholder value. But guidance, in particular, raises