Lincare Holdings Inc. (LNCR: Quote) Monday reported a higher profit for the second quarter as improved demand for its home-based respiratory therapy services led to a rise in revenues. The company's earnings for the quarter topped Street estimates by a penny, while revenues missed expectations.
Lincare, which has agreed to be acquired by Germany-based Linde AG, said its revenues for the quarter grew 10.5 percent year-over-year. The increase was comprised of about 11 percent in internal and acquisition growth, partly offset by 0.5 percent from the impact of Medicare payment reductions.
CEO John Byrnes said, "...We continue to focus on those activities that we believe will drive the long-term success of our Company -- an emphasis on organic revenue growth driven by our market leading positions in our core respiratory service lines and expansion of our product offerings..."
Clearwater, Florida-based Lincare reported second quarter net income of $47.9 million or $0.56 per share, up from $42.8 million or $0.45 per share last year.
On average, 7 analysts polled by Thomson Reuters expected earnings of $0.55 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter were $496 million, compared to $449 million last year. Analysts expected $503.38 million.
Earlier this month, German industrial gases producer Linde AG (LNAGF.PK, LNEGY.PK) agreed to acquire Lincare for $41.50 per share in an all-cash deal of about $4.6 billion. The deal, subject to regulatory approvals, is expected to close in third quarter 2012.
The proposed deal will provide Linde with an extension to its pharmaceutical and medical gases division, currently focused on hospitals and emergency centers. It will also nearly triple Linde's home-car gas sales in the U.S. The deal will also see Linde extend its reach across the U.S.
LNCR closed Monday on the Nasdaq at $41.33, on a volume of about 2.4 million shares. In after hours the stock gained 0.12%. In the past year, the stock has ranged between $19.65 and $41.65.
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by RTT Staff Writer
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