FHP International Predicts Disappointing Results: The health care services company, which has been undergoing organizational upheavals, said fourth-quarter earnings will be about half what analysts were expecting. Analysts had estimated that the Fountain Valley company’s earnings would approach 50 cents a share, but FHP said they will be about 23 cents to 27 cents a share as the company struggles with higher administrative and advertising costs and low membership growth. The company faces an earnings shortfall of $22 million to $26 million for several reasons, including problems stemming from its acquisition last year of TakeCare Inc., a large health maintenance organization. The company in June announced a corporate restructuring that resulted in 500 layoffs and the abrupt resignation of the company’s founder, Robert Gumbiner. FHP stock dropped about 7% on Wednesday to close at $24.125, down $1.875 in Nasdaq trading.
<i> Times Staff and Wire Reports</i>