Providence Service Expects 2Q Growth Of 33 Percent

TUSCON, Ariz. (AP) — The Providence Service Corp., which provides and manages government-sponsored social services, said Tuesday it expects its second-quarter profit will be at least 33 percent higher than it was for the same period last year.

The Tucson, Ariz., company said it expects to post a profit of "at least" 36 cents per share for the quarter ending June 30. Last year, the company reported earnings of 27 cents per share.

Fletcher McCusker, chairman and CEO, said results strengthened in April and May. "The payer environment continues to stabilize, Medicaid enrollment is increasing, and the benefits of recent cost-cutting programs continued to enhance our results in the second quarter," he said.

While the guidance indicates growth, it falls short of Wall Street expectations.

Analysts polled by Thomson Reuters, on average, expect profit of 38 cents per share, with estimates ranging between 31 cents and 45 cents.

The company expects to report results the week of Aug. 9.

In very light morning trading, Providence Service shares added 43 cents, or 4.4 percent, to $10.21. The stock has changed hands between 68 cents and $26.19 in the past 52 weeks, and has tripled since early March.