Home health provider Amedisys Inc., hit by new Medicare rules, said Tuesday that its second-quarter profit dropped 33 percent.
The company also lowered its earnings guidance for 2011. The report sent Amedisys shares down by more than 10 percent.
For the April-through-June quarter, Amedisys earned $21.7 million, or 75 cents per share, on revenue of $373.2 million. A year ago, Amedisys posted second-quarter earnings of $32.2 million, or $1.13 per share. For the latest quarter, analysts surveyed by FactSet expected earnings of 68 cents per share on $383.1 million in revenue.
Amedisys chief executive William Borne said regulatory changes affecting home health operations were reducing both volume and prices — leading to the guidance downgrade.
The company now expects 2011 earnings to range between $2.20 and $2.40 per share on revenue of between $1.47 billion to $1.5 billion. That's down from its April prediction for 2011 earnings of $3 to $3.30 per share on revenue of between $1.6 billion and $1.65 billion.
Analysts have forecast earnings of $2.97 per share on $1.58 billion in sales.
In late morning trading, Amedisys shares slid $2.49, or 10.1 percent, to $22.17. The shares have traded in a 52-week range of $20.09 to $38.87.