CINCINNATI (AP) — Omnicare Inc., which dispenses drugs for nursing homes and other long-term care centers, said Monday its net income almost doubled in the fourth quarter compared to a year ago, when its results were weighed down by litigation costs.
Omnicare said revenue from its long-term care business slipped during the quarter. The company also provides consulting and data management services for skilled nursing, assisted living and other chronic care institutions, and revenue from that business jumped 25 percent. Omnicare's fourth-quarter results were similar to Wall Street forecasts, but its revenue forecast for 2013 was lower than expected.
For the three months ended Dec. 31, net income rose 89 percent to $59 million, or 54 cents per share, from $31.2 million, or 27 cents per share. Excluding one-time items, the company said it earned 86 cents per share in the latest quarter.
Per-share results for the 2012 quarter were boosted by a 4 percent drop in the number of outstanding shares.
Omnicare's revenue fell 2 percent, to $1.53 billion from $1.55 billion.
Analysts, on average, were projecting net income of 85 cents per share on $1.51 billion in revenue, according to FactSet.
In the fourth quarter of 2011, Omnicare reported $23 million in expenses related to litigation and took a loss of $7 million from a discontinued business. In the most recent quarter, Omnicare's litigation costs fell by half and it didn't take any charges from discontinued operations. Its interest expenses also decreased compared to a year ago.
Revenue from the long term care business slipped 7 percent to $1.18 billion and specialty business revenue rose 25 percent to $346 million.
Omnicare said its net income for the year more than doubled, to $194.9 million, or $1.73 per share, from $86.9 million, or 76 cents per share for all of 2011. Revenue slipped to $6.16 billion from $6.18 billion.
The company is forecasting adjusted earnings per share of $3.47 to $3.57 for 2013, on $6.1 billion to $6.2 billion in revenue.
Analysts expected net income of $3.53 per share and $6.22 billion in revenue, on average.
Shares of Omnicare lost 15 cents to $39.42 in late morning trading. The stock has changed hands between $29.24 and $40 in the past 52 weeks.