NEW YORK (AP) -- Shares of Health Management Associates Inc. may come under pressure Monday after the hospital operator warned that its preliminary earnings reflect tough economic conditions.
The Naples, Fla., company said late Sunday it expects to earn an adjusted 19 cents to 21 cents per share attributable to common shareholders for the fourth quarter on revenue of $1.48 billion.
On average, analysts surveyed by FactSet forecast a quarterly profit of 23 cents per share on revenue of $1.48 billion.
Health Management expects to post several charges for legal matters and the Medicaid program.
"Our preliminary 2012 results reflect an ongoing difficult economic backdrop," said Gary Newsome, president and chief executive. "However, by continuing to focus on delivering high quality care, while maintaining strong fiscal discipline, we achieved solid same hospital results for the quarter and the year." That metric refers to results at hospitals open at least a year, which strips out the distorting impact from facilities that have recently opened or closed.
Looking ahead to 2013, the company expects to earn 86 cents to $1.01 per adjusted share on revenue of $7 billion to $7.2 billion. Analysts expect Health Management to post a 2013 profit of 90 cents per share and revenue of $6.14 billion.
Health Management operates 70 hospitals primarily in the Southeast.
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