Updated from Nov. 1
surged 20% Tuesday after setting a $30 million stock buyback.
The news came two weeks after the Dallas-based hospice company
shocked Wall Street with word of an earnings shortfall, management shake-up and government investigation. Odyssey plunged 40% that day.
On Monday, the company said it earned $9 million, or 24 cents a share, for the quarter ended Sept. 30. That's up from the year-ago $7.8 million, or 21 cents a share, and in line with guidance the company offered Oct. 18. Revenue rose 23% to $87.5 million.
Odyssey said last month that the Justice Department's Civil Division has begun an investigation under the False Claims Act. The investigation relates to claims for payment the company has submitted since Jan. 1, 2000, and covers "conduct with respect to patient admissions, patient retention and billing practices."
At the time, the company cut its third-quarter earnings guidance to 24 cents a share from 27. Odyssey also trimmed its 2004 earnings estimate by a dime.
Early Tuesday, Odyssey rose $1.62 to $9.70.