Omnicare 3Q profit rises 13 percent

Omnicare 3rtd-quarter profit rises 13 percent as lower costs offset revenue decline

COVINGTON, Ky. (AP) -- Omnicare Inc., which dispenses drugs to nursing homes and long-term care facilities, said Thursday its third-quarter profit rose 13 percent as lower costs and an income tax adjustment offset a dip in revenue.

Net income rose to $72.5 million, or 61 cents per share, from $53.8 million, or 46 cents per share, a year prior. Revenue fell 2 percent to $1.54 billion from $1.58 billion.

Excluding restructuring and other charges, the company said it earned 76 cents per share. Analysts polled by Thomson Reuters expected profit of 60 cents per share on revenue of $1.55 billion.

The company cut selling, general, and administrative expenses by 11 percent to $203.4 million. It also cut restructuring and legal charges. Meanwhile, the company said it had a favorable income tax adjustment of about $19 million, or 16 cents per share.

Looking ahead, the company adjusted its guidance, lowering the top end of its full-year profit outlook to between $2.50 and $2.52 per share, down from prior guidance of $2.50 to $2.55 per share. Analysts expect $2.51 per share on average, with estimates ranging between $2.45 and $2.54 per share.

Shares of Omnicare fell 59 cents, or 2.6 percent, to $21.71 in midday trading.