Earnings: IPC, Teledyne, On AssignmentWednesday, April 23, 2014
IPC The Hospitalist Co. Inc. reported disappointing first quarter results on Wednesday as the manager of doctors’ groups was tripped up by its aggressive acquisition strategy.
The North Hollywood company, which provides doctors to hospitals and nursing homes, reported net income of $10.3 million (58 cents a share) for quarter ended March 31, compared to net income of $10.5 million (61 cents) for the same quarter last year. Revenue grew 12.9 percent to $173 million.
Analysts on average expected net income of 64 cents a share on revenue of $183 million, according to Thompson Financial Network.
Chief Executive Dr. Adam Singer said that the results were affected by the costs for integrating acquired practices, the end of contracts at several facilities and a few under-performing practices. Recent acquisitions include Preferred Hospitalists of Michigan PLLC in Warren, Mich. and CAP Medical Group PLLC in New Hartford, N.Y.
“We continue to anticipate seeing the benefit of our expanded recruiting resources in the second half of this year, and coupled with our acquisition pipeline, we are excited about the growth opportunities,” Singer said in a statement.
The company released its results after the close of markets on Wednesday. Shares earlier closed up 6 cents, or less than a percent, to $48.40 on the Nasdaq.
Teledyne Technologies Inc. posted fiscal first quarter profit on Wednesday that beat analysts’ estimates even as decreasing defense orders cut into revenue
The Thousand Oaks aerospace, marine and energy-products manufacturer reported net income of $46 million ($1.20 a share) for the quarter ended March 30, compared with $39.8 million ($1.07) in the same period last year. Revenue rose less than 1 percent to $574 million.
Analyst estimated earnings of $1.13 on revenue of $583 million, according to Thomson Financial Network.
Teledyne Chairman and Chief Executive Robert Mehrabian said that strong orders in the marine-oil and gas instrumentation businesses, commercial avionics and communication equipment helped offset a decrease in defense-related sales.
“Cash flow was strong, especially for a first quarter, providing continued flexibility for acquisitions,” he said in a statement.
Shares closed down $2.26 cents, or 2.3 percent, to $94.24 on the New York Stock Exchange.
On Assignment Inc. met first quarter profit estimates on Wednesday, while acquisitions helped the professional staffing service exceed revenue forecasts.
The Calabasas company reported net income of $13.9 million (25 cents a share) in the quarter ended March 31, compared to $24.6 million (46 cents) for the same quarter last year. Revenue increased nearly 16 percent to $439 million.
Analysts on average expected net income of 25 cents a share on revenue of $426 million, according to Thomson Financial Network.
The company noted that its revenue was boosted by several acquisitions during the past year, while the sale of a subsidiary in the first quarter of 2013 artificially inflated last year’s first-quarter profits by $14.4 million.
“Demand for our IT services continues to be robust, and we are well positioned to expand our market share,” said Chief Executive Peter Dameris in a statement.
On Assignment released its results after the close of markets on Wednesday.
Shares earlier closed down 77 cents, or less than a percent, to $36.27 on the New York Stock Exchange.