Home health care services company Gentiva Health Services Inc. said Tuesday its third-quarter profit fell 47 percent on higher costs following the $1 billion buyout of hospice care company Odyssey Healthcare Inc.
The company closed the buyout in August.
Gentiva earned $8.1 million, or 27 cents per share, down from $15.4 million, or 52 cents per share, during the same period a year prior. Revenue surged 38 percent to $387.8 million from $281.2 million.
Excluding integration and other charges, the company said it earned 73 cents per share. Analysts polled by Thomson Reuters expected profit of 62 cents per share on $387.5 million in revenue.
Revenue from Gentiva's home health business grew 4 percent to $272.1 million. Hospice revenue surged to $115.7 million from $18.7 million, following the Odyssey buyout.
The company expects adjusted profit between $2.75 and $2.80 on revenue between $1.42 billion and $1.45 billion in 2010. Analysts expect profit of $2.76 per share on $1.47 billion in revenue.
Shares of Gentiva fell 64 cents to $24.56 in midday trading.