CINCINNATI (AP) -- Omnicare Inc., whose CEO resigned last month, returned to a profit in its second quarter as revenue fell slightly on weakness in its long-term care business.
The pharmaceutical services provider also lifted its full-year adjusted earnings outlook due to its year-to-date performance.
Omnicare earned $18.7 million, or 17 cents per share, for the three months ended June 30. That compares with a loss of $1.5 million, or 1 cent per share, a year earlier.
During the quarter, the company agreed to pay a $50 million civil penalty to settle allegations that it improperly dispensed drugs for nursing home patients without a doctor's signed prescription since 2007.
Taking out settlement and lawsuit-related charges as well as other items, earnings from continuing operations improved to 83 cents per share from 69 cents per share.
This easily beat the 76 cents per share that analysts surveyed by FactSet forecast.
Revenue for the Cincinnati company dipped 1 percent to $1.54 billion from $1.56 billion as better sales for the specialty care group were unable to offset a decline in sales at the long-term care segment.
Wall Street expected $1.56 billion in revenue.
Last month CEO John Figueroa announced that he was stepping down from his post, saying he had accomplished what he was hired to do. Omnicare named President and Chief Financial Officer John Workman as interim CEO.
Going forward, Omnicare now foresees 2012 adjusted earnings of $3.22 to $3.28 per share. The company's prior guidance was for adjusted earnings of $3.10 to $3.20 per share. It maintained its revenue outlook in a range of $6.1 billion to $6.2 billion.
Analysts predict full-year earnings of $3.18 per share on revenue of $6.25 billion.
Shares of Omnicare shed 45 cents to $30.34 in midday trading on Wednesday.