Omnicare Inc., which dispenses drugs to nursing homes and long-term-care facilities, said Thursday its profit fell 42 percent in the first quarter on higher costs and charges.

Omnicare earned $29.3 million, or 26 cents per share, down from $50.9 million, or 43 cents per share, during the same period a year earlier. Revenue rose 2 percent to $1.53 billion.

Excluding charges, the company said it earned 52 cents per share. Analysts polled by FactSet expected net income of 50 cents per share on $1.53 billion in revenue.

The revenue increase was offset by higher costs. Cost of sales rose 3.4 percent to $1.19 billion, cutting into the company's margins. The company also saw a boost in selling, general, and administrative expenses.

Looking ahead, Omnicare expects profit between $2.05 and $2.15 per share on revenue between $6 billion and $6.1 billion in 2011.

Analysts expect $2.08 per share in profit on $6.12 billion in revenue in 2011.

Shares of Omnicare fell 48 cents to $32.23 in afternoon trading.