In this Thursday, Oct. 11, 2012 photo, a FedEx cargo jet taxis on the runway after landing at Miami International Airport in Miami. FedEx says its third-quarter profit fell 31 percent as customers are opting for less-expensive ground shipping, hurting the company's airfreight business. (AP Photo/Wilfredo Lee)
-
In this Thursday, Oct. 11, 2012 photo, a FedEx cargo jet taxis on the runway after landing at Miami International Airport in Miami. FedEx says its third-quarter profit fell 31 percent as customers are opting for less-expensive ground shipping, hurting the company's airfreight business. (AP Photo/Wilfredo Lee)
-
FILE - In this Monday, Dec. 10, 2012, file photo, workers sort packages at a FedEx sorting facility in Kansas City, Mo. FedEx is more pessimistic about the U.S. economy than it was three months ago, but more assured of its own ability to grow earnings. The world's second-largest package delivery company lowered its economic forecast for the U.S., saying that there remains a lot of uncertainty for the company and the country. Its forecast for the current quarter, which incorporates the critical holiday season, falls short of Wall Street expectations. (AP Photo/Charlie Riedel, File)
-
FILE - In this Monday, Dec. 10, 2012, file photo, workers sort packages at a FedEx sorting facility in Kansas City, Mo. FedEx is more pessimistic about the U.S. economy than it was three months ago, but more assured of its own ability to grow earnings. The world's second-largest package delivery company lowered its economic forecast for the U.S., saying that there remains a lot of uncertainty for the company and the country. Its forecast for the current quarter, which incorporates the critical holiday season, falls short of Wall Street expectations. (AP Photo/Charlie Riedel)
-
FILE - In this Tuesday, Dec. 11, 2012 file photo, FedEx workers unload packages from a cargo plane at the Oakland Regional Sort Facility in Oakland, Calif. FedEx is more pessimistic about the U.S. economy than it was three months ago, but more assured of its own ability to grow earnings. The world's second-largest package delivery company lowered its economic forecast for the U.S., saying that there remains a lot of uncertainty for the company and the country. Its forecast for the current quarter, which incorporates the critical holiday season, falls short of Wall Street expectations. (AP Photo/Ben Margot, File)
-
Clouds roil over the White House in Washington on the morning of Sunday, Dec. 30, 2012, as Washington has less than 48 hours to avert the “fiscal cliff,” a series of tax increases and spending cuts set to take hold on Jan. 1. Republican and Democratic negotiators in the Senate were hoping to reach a deal to avoid going over the cliff on Sunday. (AP Photo/Jacquelyn Martin)
-
Senate Majority Leader Harry Reid, D-Nev., retreats to a closed-door meeting with fellow Democrats as he and Senate Minority Leader Mitch McConnell, R-Ky., work to negotiate a legislative path to avoid the so-called "fiscal cliff," at the Capitol in Washington, Sunday, Dec. 30, 2012. Senate and House leaders rushed to assemble a last-ditch agreement to stave off middle-class tax increases and possibly delay steep spending cuts in an urgent attempt to find common ground after weeks of gridlock. (AP Photo/J. Scott Applewhite)
-
Senate Minority Leader Mitch McConnell of Kentucky, center, arrives at his office in the Capitol as he and Senate Majority Leader Harry Reid of Neveda, try to negotiate a legislative solution to avoid the so-called "fiscal cliff" in Washington, Sunday, Dec. 30, 2012. (AP Photo/J. Scott Applewhite)
-
-
In this Wednesday, April 27, 2011, photo, Procter & Gamble products are displayed at a Target store in Richmond, Va. Procter & Gamble said Friday that its fiscal second quarter net income more than doubled and boosted its profit outlook as the maker of Tide and Pampers took back market share. (AP Photo/Steve Helber)
-
FILE - This Jan. 27, 2011 file photo shows an Exxon sign in Carnegie, Pa. Exxon Mobil Corp. said Friday, Feb. 1, 2013, that fourth-quarter earnings rose 6 percent to $9.95 billion with help from higher refining profit margins. The company still makes most of its money by producing oil and gas, but that end of the business was less profitable than a year ago because of lower prices and production. Exxon made up the difference in the refining business. (AP Photo/Gene J. Puskar, File)
Gentiva expects $30M income hit from sequestration
ATLANTA (AP) — Gentiva will see profits cut substantially this year because of cuts to the
Medicare program, the home care and hospice company said Wednesday.
A series of automatic spending cuts, the result of a budget impasse in Washington, will reduce adjusted income from continuing operations by about 60 cents per share, Gentiva said. Annual revenue will be reduced by about $30 million.
For the full year the company expects adjusted income of 90 cents to $1.10 per share from continuing operations and $1.69 billion to $1.73 billion in revenue.
Analysts had been projecting adjusted income of $1.22 per share and $1.71 billion in revenue, according to FactSet.
Shares of Gentiva Health Services Inc. lost 34 cents, or 2.7 percent, to $12.28 in morning trading.
The budget cuts include a reduction in funding for Medicare, the federal program that provides coverage for the elderly and disabled people. Gentiva said it is assuming the cuts will affect its reimbursement for patients whose service ends April 1 or later.
The company also forecasts $21 million in lost revenue because of branches it sold or closed in 2012.
Gentiva reported adjusted income of $37.7 million, or $1.23 per share, from continuing operations in 2012, and its revenue fell 5 percent to $1.71 billion. Its business was hurt by a home health Medicare rate reduction last year and the sale or closure of some branches.
Tags:
ap, factset, gentiva, cuts, cents, income, wednesday, inc., automatic spending cuts, profits, series, result, percent, operations, annual revenue, medicare program, business, company, analysts, washington, morning trading, stock market, revenue, shares, share, atlanta, health care, disabled people, closure, coverage, reimbursement, budget cuts, budget impasse, adjusted income, sequestration, federal program, branches, home care, gentiva health services, medicare rate reduction, hospice company, elderly and disabled
Print Page
