Omnicare Inc. said Thursday its net income fell 60 percent in the second quarter on lower pharmacy services revenue.
The company, which dispenses drugs to nursing homes and long-term care facilities, also cut its outlook for the year, helping to send its shares down 11 percent in morning trading to $22.57, a decrease of $2.69 per share.
Omincare earned $11.6 million, or 10 cents per share, down from $28.7 million, or 25 cents per share, during the same period a year earlier. Revenue fell 1 percent to $1.52 billion from $1.54 billion.
Excluding restructuring and other charges, the company said it earned 48 cents per share. Analysts polled by Thomson Reuters expected net income of 62 cents per share on $1.53 billion in revenue.
Omnicare said its pharmacy services revenue fell a half-percent to $1.49 billion from $1.5 billion. The decline came as the company saw a 3.8 percent decline in dispensing prescriptions.
Revenue from Omnicare's clinical research business fell 33 percent to $27.4 million from $40.8 million.
Looking ahead, the company cut its full-year outlook for adjusted earnings to between $2.00 and $2.10 per share instead of between $2.60 and $2.70 per share. Analysts expect $2.65 per share.
"While we are disappointed to be lowering our full-year 2010 guidance, we are looking at a variety of strategies to restore profitable top-line growth," said interim President and CEO James D. Shelton, in a statement.