UBS Remains Sidelined on Kindred Healthcare (KND) Ahead of 3Q Report
- Wall Street flat as telecom gains fail to counter oil drop
- Equinix (EQIX) Announces $3.6B Acquisition of Data Center Portfolio from Verzion (VZ)
- Deal Progress Said to Slow as Johnson & Johnson (JNJ) Puts Actelion (ALIOY) Under Microscope - Source
- Trump Wants to Cancel New Air Force One Order with Boeing (BA)
- Roper Industries (ROP) to acquire Deltek in $2.8B Deal
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
UBS maintained a Neutral rating on Kindred Healthcare (NYSE: KND), and cut the price target to $10.50 (from $12.50), ahead of the company's 3Q earnings report. The KND's model was updated to include the company's sale of 12 hospitals, as well as the purchase of the home health operations of the Arkansas Dept of Health. Q3 EPS estimates of $0.07 compares with the company's quarterly guidance of $0.02-0.12.
Analyst A.J. Rice commented, "We are updating our model to include the impact of KND's sale of 12 hospitals (closed early Oct), as well as the purchase of the home health operations of the Arkansas Dept of Health (closed Aug 1). On Oct 3, KND sold 12 LTACHs to Curahealth for cash proceeds of $21 mln (plus contingent consideration). The 12 hospitals were expected to generate revs of $215 mln, EBITDAR of $14 mln, and breakeven EBITDA in 2016. KND has noted in the past that trimming its LTAC footprint will allow it to focus on being efficient in its remaining markets. Also included in our updated model is the purchase of the home health operations of the Arkansas Dept of Health (closed Aug 1). The HH acquisition, which cost the company $39 mln, should provide $40 mln annual revenues. We are lowering our 2016 and 2017 revenue estimates by $48/$155 mln to $7,205/$7,237 mln, respectively. We are reducing our 2016 and 2017 EBITDAR estimates by $3/$9 mln to $982/$991 mln, respectively. However, given the EBITDA neutral impact of the sale of 12 hospitals and modestly accretive expectation for Arkansas home health, we are increasing our 2017 EPS estimates by $0.02 to $0.92. Neither of these two transactions is included in the company's current guidance."
Shares of Kindred Healthcare closed at $9.91 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Downgrades PennTex Midstream Partners, LP (PTXP) to Hold
- Imperial Capital Raises Price Target on Eldorado Resorts (ERI) Ahead of Acquisition
- Wedbush Downgrades Select Comfort (SCSS) to Neutral
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesUBS, Earnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!