Gentiva's 2013 Guidance Disappoints - Analyst Blog
21 Marzo 2013 - 10:10AM
Zacks
Recently, Gentiva Health Services Inc. (GTIV)
released it financial guidance for 2013. The company expects
adjusted income from continuing operations between 90 cents and
$1.10 per share, substantially lower than the Zacks Consensus
Estimate of $1.29. However, we expect a downward revision in the
Zacks Consensus Estimate once analysts start revising their
estimates to account for the company guidance.
The guidance is significantly below Gentiva’s 2012 adjusted
income from continuing operations of $1.23 per share. The 2013
earning per share guidance is calculated on the basis of 31 million
outstanding shares.
Meanwhile, Gentiva’s net revenue guidance for 2013 stands at
$1.69–$1.73 billion. This guidance includes a negative impact of
$21 million from the sale and closure of branches in 2012.
Both the above-mentioned guidance include the impact of
sequestration and changes in Medicare rates, leading to a $30
million reduction in net revenues and 60 cents per share in
adjusted income from continuing operations. Gentiva has calculated
the amount using the assumption that the sequestration will affect
the reimbursement rates of only those Medicare beneficiaries whose
service date does not end by Mar 31, 2013.
However, both the guidance excludes the impact of potential
acquisitions, credit agreement amendments or changes in
reimbursement rate. The adjusted income from continuing operations
guidance excludes expenses related to acquisitions, restructuring,
integration activities, legal settlements and other special
charges.
Further, Gentiva expects free cash flow in the range of $40–$50
million in 2013. Free cash flow is the amount remaining after
reducing capital expenditures from net cash flow from operating
activities.
Gentiva’s free cash flow is expected to be low in the first
quarter and increase as the year goes by, due to the impact of
seasonality and debt prepayment. The company has no debt repayment
scheduled in 2013 as it prepaid the $25 million due in
February.
Gentiva expects to achieve a mid-single digit growth rate in its
home health division in 2013. The company also aims to bring
consistency to the growth in the hospice segment.
Gentiva currently carries a Zacks Rank #3 (Hold). Other
healthcare companies worth considering are Addus HomeCare
Corporation (ADUS) – Zacks Rank #1 (Strong Buy),
LCA-Vision Inc. (LCAV) – Zacks Rank #2 (Buy) and
Coventry Health Care Inc. (CVH) – Zacks Rank #2
(Buy).
ADDUS HOMECARE (ADUS): Free Stock Analysis Report
COVENTRY HLTHCR (CVH): Free Stock Analysis Report
GENTIVA HEALTH (GTIV): Free Stock Analysis Report
LCA-VISION INC (LCAV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Grafico Azioni Coventry Hlth Care (NYSE:CVH)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Coventry Hlth Care (NYSE:CVH)
Storico
Da Giu 2023 a Giu 2024