The company said it expects adjusted earnings of $1.94 to $1.96 a share; in October it forecast earnings of between $2.08 and $2.11 a share. Hanger said operating problems in a small non-clinic unit within the company's patient care segment were the main reason for lowering guidance.
"We are clearly disappointed that operating problems at this unit impacted our fourth quarter results," said President and CEO Vinit Asar in the company's statement. "Despite this unfortunate setback we still anticipate delivering adjusted EPS growth of at least 8% for 2013. We remain confident in our core business and expect to deliver adjusted EPS growth of approximately 10% in 2014."
Hanger will release its full earnings results on Feb. 12.
TheStreet Ratings team rates HANGER INC as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about its recommendation:
"We rate HANGER INC (HGR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."