Omnicare Turns To Profit In Q3, Lifts Low End Of 2014 Earnings Outlook

(RTTNews) - Pharmaceutical services provider Omnicare Inc. (OCR) on Friday reported a turnaround to profit in the third quarter, reflecting higher revenues and lower one-time charges. Looking ahead, the company lifted the lower end of its adjusted cash earnings outlook and maintained its revenue forecast.

Cincinnati, Ohio-based Omnicare's net income for the third quarter was $64.83 million or $0.61 per share, compared to net loss of $66.31 million or $0.65 per share in the year-ago period.

The latest quarter's results include special items totaling $0.11 per share, compared to special items totaling $1.30 per share in the year-ago period.

Excluding special items, adjusted cash earnings from continuing operations for the quarter were $0.94 per share, compared to $0.88 per share in the same period last year.

On average, nine analysts polled by Thomson Reuters expected the company to earn $0.92 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 6 percent to $1.61 billion from $1.52 billion in the year-ago period. Analysts had a consensus revenue estimate of $1.60 billion for the quarter.

Sales at the company's core Long-Term Care business rose 2 percent to $1.16 billion, while Specialty Care Group sales grew 19 percent to $425 million. The Specialty Care Group recorded a 27 percent increase in operating profit.

For fiscal 2014, Omnicare now projects adjusted cash earnings per share, excluding special items, in a range of $3.70 to $3.72, compared to the prior range of $3.64 to $3.72. The company still expects revenue for the year in a range of $6.3 billion to $6.4 billion.

Analysts currently expect the company to report earnings of $3.69 per share for the year on revenues of $6.39 billion.

The company also maintained its guidance for cash flows from operations, excluding settlement payments, in a range of $500 million to $550 million.

OCR closed Thursday's trading at $64.08, up $0.14 on a volume of 1.27 million shares.