Lincare Beats by a Penny, Sales Lag - Analyst Blog
17 Juillet 2012 - 11:00AM
Zacks
Lincare Holdings
Inc. (LNCR) reported its second quarter 2012 adjusted
earnings per share of 56 cents, beating the Zacks Consensus
Estimate by a penny and surpassing the year-ago earnings per share
of 45 cents (up 24.4%). In the quarter, profit increased 11.9% to
$47.9 million, led by higher sales.
Recently, the company announced its takeover by The Linde Group, a
German gases and engineering company. Per the agreement, Linde
agreed to buy all the outstanding shares of Lincare in cash for
$41.50 per share or $4.6 billion.
The acquisition, subject to certain regulatory conditions along
with shareholder approval, is expected to close by the third
quarter of 2012. After the acquisition, Lincare will be
incorporated into Linde as a fully-owned subsidiary.
Revenue
Revenues rose 10.5% year over year to $496.2 million, but missed
the Zacks Consensus Estimate of $504 million. Year-over-year
revenue growth can be attributed to acquisition and internal growth
of roughly 11%, partially offset by a 0.5% negative impact of
Medicare payment cuts amounting to $2.1 million.
Margins
Gross margin dropped to 67.7% in the reported quarter from 68.3% a
year ago. Operating margin remained flat year over year at 17.8%.
Selling, general and administrative charges, as a percentage of
sales, were 18.1% compared with 19% in the prior-year quarter.
Balance Sheet
Lincare ended the quarter with cash and short-term investments of
$165.9 million, up 35.8% year over year. Total long-term debt
(including current installments) was $803.8 million, up 50.9% year
over year.
Florida-based Lincare is a leading provider of oxygen and other
respiratory therapy services to patients at home. The company
offers services and equipment to more than 800,000 clients across
Canada and the U.S. through 1,058 local outlets.
Lincare successfully expanded its anti-coagulation monitoring
franchise in the last one year with a 130% increase in the number
of patients on service. It also plans to broaden its pulmonary
rehabilitation business. The company remains committed to boosting
sales through its leadership in respiratory therapy services and
expansion of its product range. According to the company’s cost
saving strategy, the company consolidated 50 operating centers
during the first half of 2012 to enhance its operating
efficiency.
However, the company derives a major portion of its revenue from
government sources and is therefore vulnerable to reimbursement
rate cuts. It competes with other players in the U.S. home health
care market such as Gentiva Health Services Inc.
(GTIV) and Rotech Healthcare Inc. (ROHI).
Lincare Holdings currently retains
a Zacks #2 Rank, which translates into a short-term Buy rating.
GENTIVA HEALTH (GTIV): Free Stock Analysis Report
LINCARE HLDGS (LNCR): Free Stock Analysis Report
ROTECH HEALTHCR (ROHI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Lincare Holdings Inc. (MM) (NASDAQ:LNCR)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Lincare Holdings Inc. (MM) (NASDAQ:LNCR)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024
Real-Time news about Lincare Holdings Inc. (MM) (NASDAQ): 0 recent articles
Plus d'articles sur Lincare Holdings Inc. (MM)