Shares of Amedisys Inc. tumbled Tuesday morning, after the home health provider said its second-quarter net income fell 34 percent, and it chopped its earnings forecast for the year.
The Baton Rouge, La., company's revenue dropped more than 11 percent compared with last year's quarter, as it said its home health performance fell below expectations.
"Regulatory changes mainly in our home health division have had a dampening impact on volume and pricing resulting in our downward adjustment to guidance for the year," CEO William F. Borne said in a statement from the company.
Company shares fell 9 percent, or $2.21, to $22.45 in late morning trading, while broader trading indexes were down less than 1 percent.
Amedisys earned $21.7 million, or 75 cents per share, in the three months that ended June 30. That compares with net income of $32.2 million, or $1.13 per share, in last year's quarter. Adjusted earnings were 67 cents per share.
Revenue fell to $373.7 million from $422.3 million.
Analysts surveyed by FactSet expected adjusted earnings of 68 cents per share on $383.1 million in sales.
Visits fell 8 percent to 2.1 million, and admissions dropped 3 percent.
The company now expects 2011 earnings to range between $2.20 and $2.40 per share on revenue of $1.47 billion to3.30 $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 expect earnings of $2.97 per share on $1.58 billion in sales.