Gentiva Health Services Q2 Profit Tops View, Cuts Full Year Revenue Outlook

(RTTNews) - Gentiva Health Services, Inc. (GTIV), a provider of home health and hospice services, Thursday said profit in the second quarter declined from the prior year, amid a slide in revenues. Adjusted earnings topped view.

Net income attributable to Gentiva shareholders was $6.35 million or $0.20 per share, a sharp decline from last year's $13.91 million or $0.46 per share.

Adjusted income attributable to Gentiva shareholders was $0.22 per share, while it totaled $0.35 per share in the previous year. On average, 7 analysts polled by Thomson Reuters expected earnings of $0.21 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues fell 3 percent to $414.4 million from $427.7 million in the prior year. Analysts expected revenues of $416.83 million for the quarter.

According to the company, the latest quarter's net revenues were hurt by the 2013 home health Medicare rate reduction, the full-quarter effect of the 2 percent sequestration rate cut on Medicare-based revenues and the sale or closure of branches in the prior year.

The company continues to expect 2013 adjusted income attributable to Gentiva shareholders to be in the range of $0.90 to $1.10 per share. Analysts expect earnings of $0.92 per share for the year.

Based on first half 2013 results and the potential fourth quarter 2013 impact of the proposed 2014 Medicare home health and hospice reimbursement rules, the company now expects full-year net revenues to be in the range of $1.67 billion to $1.70 billion.

The previous forecast was for revenues in the range of net revenues to be in the range of $1.69 billion to $1.73 billion. Wall Street looks for annual revenues of $1.68 billion.