Lincare Holdings ( LNCR) reported a 3.6% rise in second-quarter earnings. The Clearwater, Fla.-based company, a provider of respiratory therapy services to patients at home, earned $51.9 million, or 52 cents a share, in the quarter, compared with $50.1 million, or 48 cents a share, a year ago. The earnings for the latest quarter include a pre-tax stock based compensation expense of $5.2 million. Analysts surveyed by Thomson First Call were expecting earnings of 51 cents a share in the most recent quarter. Second-quarter revenue rose 11% from a year ago to $350.13 million, surpassing analysts' expectation of $345.59 million in the most recent quarter. The rise in revenue was driven by an internal growth of 12%, which was offset by 3% Medicare prices reduction and 2% contribution from acquisitions. Operating margin for the most recent quarter fell 156 basis points to 24.7%. During the second quarter, the company completed the acquisition of five businesses with annual revenues of about $14.0 million Lincare added 18 new operating centers in the second quarter. "We are experiencing strong customer growth and expanding market share in our core respiratory business and we continue to make inroads in the sleep therapy market," said the company. "We continue to expand by opening denovo locations in new and contiguous geographic markets and to be selective regarding acquisitions of quality respiratory providers."