NEW YORK (AP) -- HMS Holdings Corp., which helps government programs track fraud and improper payments, said Friday that its profit fell 10 percent in the fourth quarter on costs related to its acquisition of HealthDataInsights Inc.
HMS bought HealthDataInsights, which also helps government programs and health plans identify improper payments, for about $400 million in a deal that closed Dec. 16. The company said its quarterly profit slipped to $11.1 million, or 13 cents per share, from $12.4 million, or 14 cents per share, one year ago.
Excluding costs related to the acquisition and other one-time items, HMS said it earned 18 cents per share. Analysts expected HMS to report a profit of 15 cents per share, according to FactSet.
Revenue climbed 14 percent, to $99.7 million from $87.2 million. Analysts expected $99.2 million.
In 2011, HMS Holdings said its profit rose 19 percent, to $47.8 million, or 55 cents per share, from $40.1 million, or 47 cents per share. Revenue increased 20 percent, to $363.8 million from $302.9 million.
The company backed its 2012 estimates, calling for a profit of about 98 cents per share on $520 million in revenue.
Shares of HMS Holdings have been trading around all-time highs in recent days, and the shares dropped 84 cents, or 2.5 percent, to $32.77 in afternoon trading.
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