HMS Holdings Q3 Profit Slightly Up, Misses View; Updates Annual Targets

(RTTNews) - HMS Holdings Corp. (HMSY), Friday posted a higher third-quarter net income, with increase in revenues. However, on an adjusted basis, earnings per share missed the Street estimates. Further, the company revised its full-year outlook.

Net income for the three-month period was $11.5 million or $0.13 per share compared with $10.5 million or $0.12 per share last year. The company said it incurred a $4.2 million in non-recurring legal and restructuring charges that impacted the results.

Adjusted earnings were $0.20 per share for the quarter. On average, eight analysts polled by Thomson Reuters expected the company to report earnings per share of $0.23 the quarter. Analysts' estimates typically exclude one-time items.

Revenues increased 12.8 percent to $127.8 million, from prior year's $113.2 million. Analysts expected the company to generate revenues of $127.13 million for the quarter.

For the full-year 2013, the company trimmed its revenue guidance to the lower end of the original guidance of $495 to $525 million, to a range of $495 to $510 million. The company revised its full-year GAAP earnings per share to $0.44-$0.51 from $0.57-$0.63, and adjusted earnings to a range of $0.75 - $0.82 per share, from $0.89 - $0.95 per share previously expected. Analysts expect the company to report earnings of $0.85 per share, on revenues of $506.74 million.