Sun Healthcare Group Cuts 2009 Outlook
NEW YORK (AP) ¿ Health care facility operator Sun Healthcare Group Inc. cut its 2009 guidance Wednesday, citing an expected decrease in Medicare reimbursement rates, and said it will cut an undisclosed number of jobs to reduce costs.
The Irvine, Calif.-based company expects profit between $1.07 and $1.10 per share and revenue ranging from just below $1.88 billion to $1.89 billion for the full year. Previously, the company forecast profit between $1.15 and $1.19 per share on revenue between $1.92 billion and $1.93 billion.
Analysts polled by Thomson Reuters expect profit of $1.10 per share on revenue of just under $1.88 billion.
"The difficult reimbursement environment reflects the impact of the one-time adjustment referred to as the forecast error correction, impacting Medicare rates, and the effect of the current economic downturn in the states in which we operate," said Chairman and CEO Richard K. Matros, in a statement.The company plans to cut an unspecified number of jobs as well as reducing nonlabor costs. "None of the labor reductions occurs at the nursing center level, but rather they relate to overhead positions," the company said. It expects the restructuring move to save $10 million annually, and expects an $800,000 charge in the third quarter primarily for severance costs. Shares of Sun Healthcare closed at $8.04 Tuesday.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV