Bottom line, Hanger Orthopedic Group (NYSE:HGR) remains perfect at 18-0. The top line, however, is a slightly different story.
For the 18th quarter in a row — a streak extending back to late 2005 — the provider of orthotic and prosthetic patient services has met or beaten consensus profit forecasts. Adjusted second-quarter earnings were $12.2 million, or 37 cents a share, although those results do not include $2.5 million in relocation expenses from moving the company’s headquarters to Austin, Texas, from Bethesda, Md., which would have cut net income to $9.8 million, or 30 cents a share.
Analysts, on average, were expecting a 36-cent adjusted profit at Hanger.
Net revenues for the three months ended June 30 were $205.8 million, up $12.3 million from year-ago levels, the firm said. The 6.4 percent jump in revenues was supported by a 4.0 percent increase in same-store sales within Hanger’s patient-care segment, rising by $6.8 million. Overall patient-care revenues climbed $9.8 million to $181.1 million, a 5.1 percent gain from 2009, although that growth was somewhat overshadowed by an 11.1 percent year-over-year expansion in distribution revenues, to $24.3 million.
The second-quarter revenues also fell $2.54 million short of the $208.34 million analysts were expecting for the period. Wall Street so far appears to be shrugging off the top-line miss, however, barely nicking Hanger stock in after-market trading July 27.
Hanger officials said the move to Texas, first announced in February, should be complete by the end of September. It expects to spend another $7 million to $11 million on top of the $6.2 million already spent, mostly for severance and relocation costs and for early lease-termination expenses.
The company also forecast adjusted 2010 earnings of between $1.27 and $1.29 a share, in line with its previous guidance and Wall Street expectations. Revenues should be in a range between $815 million and $825 million, Hanger said, slightly ahead of analysts’ estimates and as much as 8.5 percent more than the $760 million in sales reported in 2009.