Barclays Maintains an 'Equalweight' on Lincare Holdings (LNCR); March Quarter Review
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Price: $41.49 --0%
Rating Summary:
1 Buy, 3 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 5 | New: 8
Rating Summary:
1 Buy, 3 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 5 | New: 8
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Barclays maintains an 'Equalweight' on Lincare Holdings (NASDAQ: LNCR), PT $34.
Barclays analyst says, "Last night, LNCR reported 1Q EPS of $0.49, in line with our estimate as well as the consensus estimate. Despite the in-line result, we believe there could be some disappointment today around the deceleration in the company's revenue growth as well as the lack of margin expansion, although, some of this may have been anticipated, due to the impact of competitive bidding in the first nine markets that started this quarter. Nonetheless, the results of the quarter do not change the fundamental components of a longer-term thesis around LNCR, in our view. After backing out the benefit from the acquisition of a specialty pharmacy in the quarter, we note some continued slowdown in the company's revenue growth, resulting in revenue and EBITDA being below our expectations. Nonetheless, LNCR was able to deliver in-line EPS, due to $50 million in share repurchases during the quarter. Finally, there were no new disclosures around competitive bidding, however, as we noted earlier this month, we believe CMS's decision to delay the rates established by Round 2 of DME Competitive bidding until the summer of 2013 is a clear positive for LNCR. With the quarter, we are maintaining our 2011 and 2012 EPS estimates of $2.07 and $2.31, respectively."
For more ratings news on Lincare Holdings click here and for the rating history of Lincare Holdings click here.
Shares of Lincare Holdings closed at $30.76 yesterday.
Barclays analyst says, "Last night, LNCR reported 1Q EPS of $0.49, in line with our estimate as well as the consensus estimate. Despite the in-line result, we believe there could be some disappointment today around the deceleration in the company's revenue growth as well as the lack of margin expansion, although, some of this may have been anticipated, due to the impact of competitive bidding in the first nine markets that started this quarter. Nonetheless, the results of the quarter do not change the fundamental components of a longer-term thesis around LNCR, in our view. After backing out the benefit from the acquisition of a specialty pharmacy in the quarter, we note some continued slowdown in the company's revenue growth, resulting in revenue and EBITDA being below our expectations. Nonetheless, LNCR was able to deliver in-line EPS, due to $50 million in share repurchases during the quarter. Finally, there were no new disclosures around competitive bidding, however, as we noted earlier this month, we believe CMS's decision to delay the rates established by Round 2 of DME Competitive bidding until the summer of 2013 is a clear positive for LNCR. With the quarter, we are maintaining our 2011 and 2012 EPS estimates of $2.07 and $2.31, respectively."
For more ratings news on Lincare Holdings click here and for the rating history of Lincare Holdings click here.
Shares of Lincare Holdings closed at $30.76 yesterday.
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