Apria Earnings Down
COSTA MESA — Apria Healthcare Group Inc. said its efforts to get out of unprofitable managed-care contracts will reduce third-quarter earnings to 20 cents to 25 cents per share from 40 cents a year earlier.
Analysts had projected earnings of 37 cents a share for the provider of home health care services.
The stock dropped 69 cents a share to $16.81 on the New York Stock Exchange.
Apria said it is trying to leave “non-core” business lines as well as end contracts with some of its largest customers.
“Until we have finalized all renegotiations and totally withdrawn from these lower-margin offerings--set for completion by the year end--our revenues and gross profit will continue to be impacted,” said Jeremy Jones, Apria’s chairman and chief executive.
Apria expects its third-quarter net revenue to be between $303 million and $307 million, compared with $306 million in the same quarter in 1996.
Apria said in July that it hired Goldman Sachs & Co. to look for a possible buyer or to do capital restructuring.
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