Surgery center operator AmSurg reported a second-quarter profit of $46.4 million, down slightly from a year ago. Per diluted share, earnings before discontinued operations checked in at 41 cents, in line with analysts' expectations.
Revenues at the Nashville-based company rose 7 percent to $189 million, helped by a 1 percent increase in same-center revenues. Average revenues per center rose about 2 percent to $909,000. President and CEO Chris Holden said the top-line increase was due primarily to the addition of acquired centers.
"We are pleased to see modest strengthening in our comparable-quarter performance for the second quarter versus the first quarter, but our procedure volume, revenues, margins and earnings continue to be negatively affected by the weak national economy and high unemployment," Holden said.
Holden also said his team is still working to complete its acquisition of National Surgical Care, which it had expected to do before June 30. Shares of AmSurg (Ticker: AMSG) closed Thursday trading down slightly at $26.39. Year to date, they're up 26 percent.
Wellness program provider Healthways posted Q2 earnings of $5.8 million, a big drop from last year's quarter, but EPS of 17 cents were in line with the Street's outlook. Revenues fell slightly to almost $170 million and operating profits fell by more than a third to $13.4 million.
Despite the year-over-year drop, President and CEO Ben Leedle said Healthways signed 30 new, expanded or extended contracts during the quarter and is seeing good momentum with other contracting possibilities.
"We see substantial ongoing demand within our traditional health plan and employer markets for our established solutions," Leedle said. "We also continue to make progress on large, groundbreaking opportunities stemming from rapidly emerging trends in the health care market."
Among those potential initiatives are the development of state insurance exchanges and a global push toward population health management. Despite investing in those opportunities and others, Leedle said Healthways should post stronger earnings in the second half of 2011. He affirmed the company's profit guidance range of 90 cents to $1.08. Analysts' consensus is at 96 cents.
Shares of Healthways (Ticker: HWAY) climbed more than 2 percent to $17.51 Thursday. So far in 2011, they've climbed more than 50 percent.
- BRASWELL, ROBERT
- GARRETT, JOHNNY C EXECUTOR; GARRETT, JOHNNY C IV EXECUTOR; GARRETT, ANN BIGGER ESTATE; GARRETT, TIMOTHY M EXECUTOR
- GARRETT, TIMOTHY M EXECUTOR; GARRETT, ANN BIGGER ESTATE; GARRETT, JOHNNY C EXECUTOR; GARRETT, JOHNNY C IV EXECUTOR
- GARRETT, JOHNNY C IV EXECUTOR; GARRETT, JOHNNY C EXECUTOR; GARRETT, ANN BIGGER ESTATE; GARRETT, TIMOTHY M EXECUTOR