Omnicare Swings To 2Q Loss On Charges, Discontinued Operations

Date : 07/26/2011 @ 8:20AM
Source : Dow Jones News
Stock : (OCR)
Quote : 97.9  0.0 (0.00%) @ 2:05AM

Omnicare Swings To 2Q Loss On Charges, Discontinued Operations

Omnicare Inc. (OCR) swung to a second-quarter loss on litigation-related charges and a sharply wider loss at its discontinued operations, which included the contract-service business that the company sold in April.

Adjusted profit from continuing operations and revenue beat analysts' expectations.

The provider of drugs to nursing homes and assisted-living centers has seen its bottom line hurt by litigation charges and other expenses in recent quarters. Omnicare has been working to recover from turmoil that apparently led to a management upheaval last year. The company has been trying to build up its drug-distribution business and shed noncore operations.

Omnicare reported a loss of $1.5 million, or a penny a share, from a year-earlier profit of $11.6 million, or 10 cents a share. Excluding litigation-related charges, earnings from continuing operations were up at 50 cents from 49 cents.

Revenue increased 4.3% to $1.56 billion.

Analysts polled by Thomson Reuters most recently forecast earnings of 49 cents on revenue of $1.53 billion.

Gross margin edged down to 21.6% from 21.9%.

Shares of Omincare, which affirmed its 2011 guidance, closed Monday at $30.39 and were inactive premarket. The stock is up 59% from a two-year low in August following the abrupt departure of its management team.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481;

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