Gentiva Health Services Q3 Profit Slumps, Yet Beats Estimates

10/29/2009 4:44 PM ET

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(RTTNews) - Gentiva Health Services, Inc. (GTIV: News ) reported a significant decline in profit for the third quarter in the absence of a year-ago gain on the sale of an asset. The company's adjusted per share earnings, however, topped analysts' predictions.

Net income for the third quarter declined to $15.40 million or $0.52 per share from $120.89 million or $4.07 per share in the previous year. Third-quarter 2008 results included a non-recurring gain of $107.9 million or $3.67 per diluted share relating to the sale of a majority ownership interest in CareCentrix.

Adjusted net income for the quarter was $15.9 million, up 27% compared with the prior year period. Adjusted net income per share was $0.54, compared to $0.42 in the corresponding period of 2008.

On average, 10 analysts polled by Thomson Reuters expected the company to report earnings of $0.52 per share. Analysts' estimates typically exclude special items.

Net revenues for the quarter declined to $295.59 million from $345.24 million last year. Analysts expected a revenue of $300.66 million.

By segment, Home Health revenue increased of 9% to $261.4 million, while revenues in the All Other segment, which includes hospice, respiratory therapy and home medical equipment, infusion therapy and consulting, increased 11% to $34.6 million.

For the nine-month period, net income declined to $50.52 million or $1.70 per share from $140.64 million or $4.80 per share in the same period of the previous year. Net revenues for the period declined to $0.88 billion from $1.01 billion last year.

Looking forward, the company expects full-year 2009 net revenues in the range of $1.19 billion - $1.21 billion and earnings of $2.04 - $2.10 per share. Analysts currently expect revenues of $1.20 billion and earnings of $2.10 per share for the full year.

GTIV closed Thursday's regualar trading at $24.20, down 1.20 or 4.72%, on a volume of 521K shares on the Nasdaq. In after hours, the stock went up 0.02%, trading at $24.2048.