Gentiva profit beats estimates on cost cuts, reaffirms FY forecast

Thu Aug 2, 2012 7:41am EDT

* Second-quarter adj earnings $0.35/share vs est $0.28

* Second-quarter rev $427.7 mln vs est $435.2 mln

* Reaffirms full-year outlook

Aug 2 (Reuters) - Gentiva Health Services Inc's second-quarter results beat analysts' estimates as the home healthcare provider cut costs, and the company also reiterated its full-year forecast.

The company had earlier forecast adjusted net income forecast to be between $1.00 and $1.20 per share on revenue between $1.70 billion and $1.76 billion.

The news comes as a respite to home healthcare providers who experienced substantial Medicare reimbursement cuts in 2011 and 2012, and have struggled to offset the impact of changes in Medicare reimbursement rates.

Gentiva has been hit by a spate of bad news over the last year including new Medicare regulations and federal probes into billing practices.

The company is the first among peers Amedisys Inc, LHC Group and Almost Family Inc to report results this quarter.

Income from continuing operations rose to $13.9 million, or 46 cents per share, from $4.5 million, or 15 cents per share, a year earlier.

Cost of sales fell 4 percent to $204.9 million, while selling, general and administration expenses fell 14 percent to $163.9 million.

Excluding special items, earnings from continuing operations were 35 cents per share.

Revenue fell 5 percent to $427.7 million.

Analysts were expecting earnings of 28 cents per share, on revenue of $435.2 million, according to Thomson Reuters I/B/E/S.

Gentiva shares closed at $6.53 on Wednesday on the Nasdaq.

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