Earnings Warnings Hit Omnicare, Harmonic
Show no mercy.
That continues to be investors’ approach toward companies that warn they won’t make second-quarter earnings estimates.
Among the warnings Monday:
* Omnicare Inc. (OCR), the No. 1 U.S. provider of pharmacy services to nursing homes, warned quarterly results will be as much as 31% below analysts’ estimates because of lower-than-expected sales.
Its stock dived $8.81 to $9.38.
The company, which dispenses drugs and keeps computerized records for residents of long-term care facilities, said reduced Medicare reimbursement levels to nursing homes have caused cash-flow problems for its customers.
Nursing homes also are admitting patients with less drug needs because of delays in reimbursements, the company said.
* Harmonic Inc. (HLIT), a maker of cable TV equipment, warned that second-quarter profit will be about half what analysts had forecast because of reduced sales to its biggest customer, AT&T; Corp. Harmonic plunged to $28 in after-hours trading after rising $1.81 to $40.81 on Nasdaq in regular trading.
Harmonic’s stock rose more than tenfold last year, riding a wave of orders from AT&T; for transmitters and receivers that boost the capacity of fiber-optic cable for digital video and other services. Whether AT&T; is ordering less of such equipment overall, or just less from Harmonic, isn’t clear, analysts say.
