Omnicare Posts Loss, Outlook Weak; Stock Down - Update

(RTTNews) - Pharmaceutical services provider Omnicare Inc. (OCR), Wednesday reported a slip to loss in the fourth quarter, hurt by loss from discontinued operations and higher income tax provision. Nevertheless, sales for the quarter climbed 5 percent on growth at the specialty care business.

Omnicare also provided a weak guidance for 2014, which dragged down its shares by over 5 percent in morning trade on the New York Stock Exchange.

The Cincinnati, Ohio-based company posted a quarterly net loss of $83.7 million or $0.77 per share, compared with net income of $59 million or $0.54 per share last year.

Results for the quarter include a loss from discontinued operations of $142 million related to end-of-life hospice pharmacy business as well as certain retail operations.

Excluding items, adjusted cash earnings for the quarter were $0.87 per share, compared with $0.80 per share a year ago.

On average, 9 analysts polled by Thomson Reuters expected earnings of $0.90 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter climbed to $1.54 billion from $1.46 billion in the prior year. Eight analysts had a consensus revenue estimate of $1.59 billion for the quarter.

Sales at its key long-term care business edged down 0.1 percent from last year while specialty care business spiked 26 percent.

The bottomline was also impacted by income tax expense that climbed to $55 million from $30 million a year ago.

For 2014, the company expects adjusted cash earnings of $3.64 to $3.72 per share and sales of $6.3 billion to $6.4 billion. Analysts currently expect earnings of $3.95 per share on sales of $6.61 billion for the year.

In 2013, Omnicare reported adjusted cash earnings of $3.43 per share on sales of $6 billion.

Omnicare stock is trading at $61.11, down $3.43 or 5.31%, on a volume of 2.6 million shares.