MedCath Corp Earnings Cheat Sheet: Swung to a Profit

MedCath Corporation (NASDAQ:MDTH) climbed to a profit in the third quarter, but still came up short of analyst expectations. The Company is a healthcare provider and is focused primarily on providing high acuity services, including the diagnosis and treatment of cardiovascular disease.

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MedCath Earnings Cheat Sheet for the Third Quarter

Results: Swung to a profit of $12.3 million (61 cents per diluted share) in the quarter. MedCath Corporation had a net loss of $12.8 million or a loss 64 cents per share in the year earlier quarter.

Revenue: Fell 1.4% to $91.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: MDTH reported an adjusted net loss of 3 cents per share. By that measure, the company fell short of mean estimate of 9 cents per share. It beat the average revenue estimate of $85.8 million.

Quoting Management: Commenting on the quarter, O. Edwin French, MedCath President and Chief Executive Officer, stated, “During our third fiscal quarter, we continued to make progress regarding our strategic options process, completing the sale of our MedCath Partners division and announcing two hospital transactions that closed August 1. Operationally, our results this quarter were impacted by a 9.8% reduction in open heart procedures, contributing to a decline in net revenue and Adjusted EBITDA, and lower financial results at one hospital that was sold during our fourth quarter of fiscal 2011.”

Key Stats:

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by 4 cents in the second quarter and by 11 cents in the first quarter.

Competitors to Watch: Universal Health Services, Inc. (NYSE:UHS), Community Health Systems (NYSE:CYH), Tenet Healthcare Corp. (NYSE:THC), Health Management Associates, Inc. (NYSE:HMA), SunLink Health Systems, Inc. (AMEX:SSY), LifePoint Hospitals, Inc. (NASDAQ:LPNT), Dynacq Healthcare, Inc. (NASDAQ:DYII), Select Medical Hldgs. Corp. (NYSE:SEM), HCA Holdings Inc (NYSE:HCA), and RehabCare Group, Inc. (NYSE:RHB).

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(Source: Xignite Financials)