Omnicare 1Q Profit Up On Sales, Lower Costs

COVINGTON, Ky. (AP) — Omnicare Inc., which dispenses drugs to nursing homes and long-term care facilities, said Thursday first-quarter profit rose 18 percent to on steady pharmacy services revenue and lower costs.

The company earned $30.9 million, or 26 cents per share, compared with profit of $26.2 million, or 22 cents per share, a year ago. Sales remained flat at $1.56 billion,

Excluding legal and other charges, the company said it earned 64 cents per share. Analysts surveyed by Thomson Reuters expected a more modest profit of 61 cents per share on higher revenue of $1.61 billion.

Pharmacy services revenue also edged up less than 1 percent to $1.52 billion. Meanwhile, cost of sales fell 1 percent to $1.17 billion.

"Our first-quarter results reflect the continued execution of our strategic plan, which is based on leveraging our size and scale to improve profitability while investing in and developing new growth opportunities," said President and Chief Executive Joel F. Gemunder, in a statement.

Shares of Omnicare fell $1.52, or 5.6 percent, to $25.58 in midday trading.