Omnicare Inc. (NYSE:OCR) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Omnicare Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 11.11% to $0.90 in the quarter versus EPS of $0.81 in the year-earlier quarter.
Revenue: Decreased 4.27% to $1.53 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Omnicare Inc. reported adjusted EPS income of $0.90 per share. By that measure, the company beat the mean analyst estimate of $0.87. It missed the average revenue estimate of $1.54 billion.
Quoting Management: “We are pleased to begin 2013 with a solid quarter,” said John L. Workman, Omnicare`s Chief Executive Officer. “As we made further progress toward our goal of achieving sustainable net organic growth within Long-Term Care, we continued to reduce costs, largely through the utilization of low-cost generic alternatives. These cost improvements, coupled with another strong quarterly performance from our Specialty Care Group and the ongoing benefits of our efficient allocation of capital, helped drive our double-digit adjusted cash earnings per diluted share increase.”
Key Stats (on next page)…
Revenue decreased 0.32% from $1.53 billion in the previous quarter. EPS increased 4.65% from $0.86 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.87 to a profit $0.86. For the current year, the average estimate has moved down from a profit of $3.53 to a profit of $3.52 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)