Gentiva Downgraded to Strong Sell - Analyst Blog
25 Marzo 2013 - 6:45PM
Zacks
On Mar 23, 2013, Zacks Investment Research downgraded
Gentiva Health Services Inc. (GTIV) to a Zacks
Rank #5 (Strong Sell).
Why the Downgrade?
Gentiva has witnessed a downturn in estimates since reporting
its fourth-quarter earnings. The Zacks Consensus Estimate for 2013
has declined almost 28% since the company’s earning release.
On Feb 7, 2013, Gentiva reported fourth-quarter 2012 operating
earnings of 31 cents per share, which lagged the Zacks Consensus
Estimate of 35 cents as well as the year-ago quarter level of 37
cents per share.
Gentiva’s net revenues declined 5% year over year to $425.0
million, largely due to a significant cut in the home health
Medicare rates along with the sale and closure of some branches. It
also missed the Zacks Consensus Estimate of $433.0 million.
Further, the company’s guidance for 2013 is significantly lower
than the 2012 level due to the impact of sequestration and changes
in Medicare rates. On Mar 20, 2013, Gentiva revealed that it
expects adjusted income from continuing operations between 90 cents
and $1.10 per share, substantially lower than the Zacks Consensus
Estimate of $1.29 at that time.
The lower-than-expected guidance led to a downward revision in
estimates by all the analysts covering the stock. As a result, the
Zacks Consensus Estimate declined as well. Currently, the Zacks
Consensus Estimate for 2013 stands at $1.01, down nearly 18% year
over year.
Other Stocks to Consider
Not all healthcare companies are performing as poorly as
Gentiva. Some healthcare stocks with favorable Zacks Rank 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
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