Tuesday, Gentiva Health Services Inc. (GTIV), in its preliminary results, posted a higher second-quarter profit, due mainly to an increase in revenues from its health episodic and hospice segments. Also, the company reaffirmed its adjusted income guidance for the full year of 2010, but reduced its revenue outlook, citing softening of home health episodic volumes.
The home health and hospice service provider posted net income of $18.9 million, compared with $17.1 million a year ago.
Income from continuing operations climbed to $20.2 million from $17.4 million the prior year. Excluding net charges on sale of assets, adjusted income from continuing operations was higher 26% at $22.6 million, compared with $17.9 million last fiscal. On a per share basis, adjusted income rose to $0.74 from $0.61.
On average, 10 analysts polled by Thomson Reuters expected earnings per share of $0.68 for the quarter. Analysts' estimates typically exclude special items.
Net revenues rose 4% to about $297 million from $284.8 million a year ago.
Nine Wall Street analysts had estimated revenues of $308.50 million.
Revenues for the current quarter include a 7% rise in home health episodic revenues to $229.0 million, and a 14% increase in hospice revenues to $21 million.
Cash and cash equivalents approximated $191 million at July 4, 2010 compared with $168.9 million at April 4, 2010 and $152.4 million at January 3, 2010.
The company said it will issue its final 2010 second quarter and six months financial results on July 29, 2010.
Looking ahead, the company reaffirmed it outlook for fiscal 2010, expecting adjusted income from continuing operations of $2.67 - $2.75. But the company, pointing out to a softness in home health episodic volumes, pared down its full year revenue outlook between $1.20 billion and $1.23 billion. This compares with its earlier guidance of $1.23 billion - $1.26 billion.
Wall Street analysts are looking out for earnings per share of $2.71, on revenues of $1.24 billion for the full year.
Gentiva expects to further revise its full year 2010 outlook after the consummation of the Odyssey HealthCare, Inc. acquisition, which was announced on May 24, 2010 and is expected to close during the 2010 third quarter.
GTIV closed Tuesday's regular trading at $21.60, up $0.50 or 2.37%, on a volume of 319,547 shares on the Nasdaq. In the after hours, the stock was down $0.60 or 2.78%.
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