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Kinetic Concepts 2Q net income falls on costs

Tue, 07/27/2010 - 10:45am
The Associated Press

Medical technology company Kinetic Concepts Inc. said Tuesday its second-quarter net income fell 8 percent because of administrative and other costs.

Company shares slid fell $1.31, or 3.6 percent, to $35.36 in afternoon trading. The stock has traded between $30.23 and $53.01 over the last 52 weeks.

The company earned $53.6 million, or 75 cents per share, compared with net income of $58.1 million, or 82 cents per share, during the same period a year prior. Revenue rose 1 percent to $497.8 million from $491.3 million on higher sales.

Excluding charges, the company said it had net income of $1.01 per share. Analysts polled by Thomson Reuters expected net income of $1.04 per share on $505.6 million in revenue.

The company said rental revenue fell 3 percent to $283.1 million, but sales rose 8 percent to $214.7 million, giving the overall revenue a slight boost.

But, higher costs offset the gains. Selling, general, and administrative expenses rose 17 percent to $147.2 million.

For the full year, the company cut its outlook. It now expects net income between $4.19 and $4.29 per share, down from prior guidance between $4.32 to $4.46 per share, excluding charges. It now expects revenue between $2 billion and $2.03 billion down from prior guidance of $2.05 billion to $2.09 billion. Analysts expect $4.26 per share in net income on $2.06 billion in revenue.

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