I would have to disagree. The Highmark decrease definitely wasn't anticipated. It was the Highmark decrease that resulted in the removal of the previously announced (on June 30th) 2009's guidance. If I am not mistaken earlier this year they said they did not anticipate a reduction from Highmark was in the works.
The combination of the decrease in reimbursement and the now removal of 2009's guidance is why I believe July 12's announcement was not factored in to the previous decline.
From their June 30th press release:
CardioNet has previously indicated that while it had been aware Highmark Medicare Services was conducting a normal review of the reimbursement rate for MCOT™, it had received no indication of any rate adjustment or the specific timing of a Highmark decision prior to being notified on July 9, 2009. During a July 9 communication, Highmark reported that CardioNet would receive a letter notifying it of a change in reimbursement including the exact amount of the change. That letter arrived July 10, 2009.
just because a highmark decrease wasn't included in the company's official guidance doesn't mean the market wasn't already pricing in a reimbursement cut. for example, bank of america's estimates already had a 20% decline for their medicare projections.
cardionet stock is down 70% since april. in my opinion, a ton of bad news was already expected.