Gentiva Health Services Inc.’s (GTIV) first quarter 2010 (ended April 4, 2010) earnings (excluding special items) from continuing operations of 65 cents per share surpassed the Zacks Consensus Estimate by 5 cents. The company earned 44 cents per share (excluding special items) from continuing operations in the year-ago quarter. The impressive showing in the first quarter of 2010 was driven by higher volumes and revenue from its home health and hospice operations.
Total net revenues for the quarter climbed 7.5% year-over-year to $297.1 million. Revenues from the Home Health segment increased 16% year-over-year to $277.5 million in the reported quarter. Revenues in the Hospice segment came in at $19.6 million, which reflected a year-over-year increase of approximately 11.6%.
Selling, general and administrative expenses in the reported quarter climbed to $139.2 million from $119.5 million in the year-ago quarter. Gentiva’s gross profit for the reported quarter climbed 9.8% year-over-year to $156.5 million. Patient admission saw over 10% growth in the reported quarter.
Gentiva exited the quarter with cash and cash equivalents of approximately $168.9 million and outstanding debt under its credit agreement of $232 million. The company ended 2009 with cash and cash equivalents of $152.4 million and outstanding debt under its credit agreement of $237 million.
Outlook for Fiscal 2010
Gentiva reaffirmed its outlook pertaining to net revenues in 2010. The company, a leading provider of home health and hospice services across the United States, expects net revenues in the range of $1.23 billion – $1.26 billion in 2010.
The company raised its earnings per share (from continuing operations) guidance for 2010. Gentiva now expects to earn (excluding special items) between $2.67 and $2.75 as against its prior guidance range of $2.57 – $2.67. The Zacks Consensus Estimate is $2.66 per share for 2010.
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