Healthcare Stocks With Falling Profits in Latest Earnings Reports
Ecolab Inc. (NYSE:ECL) in the fourth quarter as profit dropped from a year earlier. Net income for the cleaning products company fell to $88.7 million (34 cents per share) vs. $131.3 million (56 cents per share) a year earlier. This is a decline of 32.4% from the year-earlier quarter. Revenue rose 17.1% to $1.85 billion from the year-earlier quarter. Ecolab Inc. reported adjusted net income of 70 cents per share. By that measure, the company fell in line with the mean estimate of 70 cents per share. It fell short of the average revenue estimate of $1.96 billion.
Competitors to Watch: Ocean Bio-Chem, Inc. (NASDAQ:OBCI), Zep, Inc. (NYSE:ZEP), PURE Bioscience (NASDAQ:PURE), Rollins, Inc. (NYSE:ROL), Proctor & Gamble (NYSE:PG), The Clorox Company (NYSE:CLX) and Church & Dwight (NYSE:CHD).
Tenet Healthcare Corporation (NYSE:THC) swung to a loss in the fourth quarter, missing analysts’ forecast. Reported a loss of $76 million (17 cents per diluted share) in the quarter. The healthcare facilities company had net income of $74 million or 14 cents per share in the year-earlier quarter. Revenue rose 4.8% to $2.41 billion from the year-earlier quarter. Tenet Healthcare Corporation reported adjusted net income of 10 cents a share. By this measure, the company fell short of the mean analyst estimate of 13 cents per share. Analysts were expecting revenue of $2.4 billion.
“We recorded our eighth consecutive year of growth in Adjusted EBITDA which grew to $1.145 billion in 2011, a 9.0 percent increase over 2010,” said Trevor Fetter, president and chief executive officer. “The growth would have been even stronger had we been able to close some of the favorable payer settlements we have been working on for a number of months. Because the settlements remain likely, we are raising our 2012 Outlook for Adjusted EBITDA to a new range of $1.225 billion to $1.350 billion. We also recorded our fifth consecutive quarter of growth in adjusted admissions which grew by 1.3 percent. The favorable growth in patient volumes, combined with strong pricing growth, enabled us to achieve a 5.4 percent increase in net operating revenues in the quarter.”
Competitors to Watch: Community Health Systems (NYSE:CYH), Health Management Associates, Inc. (NYSE:HMA), Universal Health Services, Inc. (NYSE:UHS), MedCath Corporation (NASDAQ:MDTH), SunLink Health Systems, Inc. (AMEX:SSY), HCA Holdings Inc (NYSE:HCA), LifePoint Hospitals, Inc. (NASDAQ:LPNT), UnitedHealth Group Inc. (NYSE:UNH), HEALTHSOUTH Corp. (NYSE:HLS), and Select Medical Hldgs. Corp. (NYSE:SEM).
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