UPDATE 1-Lincare Q2 profit beats Wall Street view

(Recasts, adds details, stock movement)

July 21 (Reuters) - Oxygen supplier Lincare Holdings Inc (LNCR.O) reported a better-than-expected quarterly profit helped by a higher number of orders placed by customers concerned about the potential loss of Medicare coverage of the drugs, sending its shares up as much as 14 percent.

The company, which was hurt by a cut in Medicare rates for oxygen therapy, sleep apnea and other products, also said it now expects Medicare price reductions to hurt 2008 revenue by about $70 million, compared with prior view of about $100 million.

Net income for the second-quarter was $62.6 million, or 82 cents per share, compared with $56.0 million, or 63 cents per share, a year earlier.

Revenue rose 8 percent to $428.4 million.

Analysts had expected the company to earn 72 cents a share, before items, on revenue of $423.6 million, according to Reuters Estimates.

In April, the Durable Medical Equipment Medicare Administrative Contractors revised the current coverage policy for nebulizers that would have effectively eliminated Medicare reimbursement and patient access for them as of July 1.

As a result of the revision, Lincare customers placed orders in June to receive a 90-day shipment of the drugs rather than a 30-day shipment, boosting its revenue by about $18.9 million.

The Clearwater, Florida-based company said second-quarter earnings were helped by about 6 cents a share due to the increase in pharmacy shipments, and expects third quarter revenue to be reduced by "amounts similar to those that increased operating results in the second quarter." Shares of the company rose to $34.78 in trading after the bell but pared the gains later. The stock closed at $30.43 in regular trading Monday on Nasdaq. (Reporting by Esha Dey in Bangalore; Editing by Gopakumar Warrier)