Tricare Inc. Stock Shares Bounce Back

Shares of TriCare Inc. stock rebounded Friday, a day after many jittery shareholders dumped the stock when the occupational health services company announced that it would post slightly lower earnings than originally predicted.

The Irvine-based company’s shares rose 50 cents at the close of over-the-counter trading, to $6.50, as investors sought to acquire shares at lower prices.

“We have been encouraging people to buy,” said Rachael M. Scherer, a health care analyst for Dain Bosworth Inc., a Minneapolis investment firm. “They are in sound financial shape. We think they will be in good shape once this shakes off.”

On Thursday, the company’s shares lost one-third of their value when the stock closed at $6. The drop came after the company announced that it expected earnings of 50 cents per share--a company record--for the fiscal year ended May 31. Still, it was only two cents lower than analysts had predicted earlier in the year.

“This has happened time and time again on these over-the-counter stocks when there is any bad news,” Scherer said. “The market seems to be taking the stock out and giving it a beating.”

Investors have been worried over reports of fraud in the state workers’ compensation system, which have led to calls for reforms such as cost controls and changes in payment guidelines. TriCare, which provides evaluation, treatment and rehabilitation for Californians with workplace injuries, has not been involved in any of the fraud cases but has felt their impact, Scherer said.

In fiscal 1991, TriCare reported earnings of $2.4 million, or 41 cents per share, on revenue of $36.6 million.