reported a 4.3% rise in third-quarter earnings.
The Clearwater, Fla.-based company, a provider of respiratory therapy services to patients at home, earned $56.22 million, or 57 cents a share, in the quarter, compared with $53.87 million, or 52 cents a share, a year ago. The earnings for the latest quarter include a pre-tax stock based compensation expense of $5.7 million. Analysts surveyed by Thomson First Call were expecting earnings of 56 cents a share in the most recent quarter.
Second-quarter revenue rose 12% from a year ago to $358 million, in line with the analysts' expectation of $358.83 million in the most recent quarter. The rise in revenue was driven by an internal growth of 13%, which was offset by 3% medicare prices reduction and 2% contribution from acquisitions.
Operating margin for the most recent quarter fell 262 basis points to 24.89%.
During the third quarter, the company completed the acquisition of two businesses with annual revenues of about $5.0 million .
Lincare added 13 new operating centers in the third quarter. It added that about $19.8 million cash payments were held up due to a hold on all payments to medicare providers from September 22, 2006 through September 30, 2006, but later released to the company during the first week of October, 2006.
" We are pleased with Lincare's operating and financial performance in the third quarter and first nine months of 2006," said the company. "We remain committed to our strategy of expanding market share in our core respiratory product lines and making selective acquisitions while controlling costs and reinvesting capital to support growth."
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