Apria Healthcare Group Says Earnings Won’t Meet Estimates

Apria Healthcare Group Inc. said Tuesday that its earnings this year will run as much as 8% below analysts’ estimates.

The home health-care company said its growth this year has been slower than expected because of computer problems stemming from its formation last summer through the merger of Orange County-based Homedco Group Inc. and Abbey Healthcare Group Inc.

In an interview, Jerry M. Jones, Apria’s chairman and chief executive, cited management hassles associated with folding 450 computer systems across the country into one. “We did all of our really large conversions in the last 90 days,” he said.

The company said earnings will range between $1.62 a share to $1.66, at least 10 cents a share below analysts’ estimates averaging about $1.76. Last year, the company recorded income of $1.40 a share before merger-related charges on revenue of $1.1 billion. Apria also said earnings for the third quarter will run about 38 to 42 cents a share, compared with analysts’ projections of about 46 cents. For the same period last year, the company earned 37 cents a share.

The home health-care company released the statement after the market closed Tuesday. Its stock closed at $20.75, off 50 cents per share, on the New York Stock Exchange.

Margo Vignola, a Merrill Lynch analyst, predicted that today “you’ll see the stock a lot lower than $20.” On Monday, Vignola reduced her earnings projection for the company, saying she was concerned that the company’s third-quarter sales wouldn’t meet expectations. But after receiving the company’s announcement Tuesday, Vignola said, “It’s a lot worse than originally thought.”