PSS World Medical Inc. reported its results for the third quarter. PSS World Medical is a national distributor of medical products and equipment, pharmaceutical products, healthcare information technology, and billing services to alternate-site healthcare providers.

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PSS World Medical Earnings Cheat Sheet for the Third Quarter

Results: Net income for PSS World Medical Inc. rose to $20.1 million (38 cents per share) vs. $19.5 million (35 cents per share) in the same quarter a year earlier. This marks a rise of 2.8% from the year earlier quarter.

Revenue: Rose 3.5% to $527.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: PSSI fell short of the mean analyst estimate of 39 cents per share. It fell short of the average revenue estimate of $540 million.

Quoting Management: President and Chief Executive Officer, Gary A. Corless, commented, “We continue to see lower utilization of the nation’s healthcare system in this prolonged economic slowdown, as evidenced by fewer visits to primary care physicians. This year’s flu season, to date, has also been lighter than expected, based on historical patterns. These factors, along with others, resulted in lower third quarter revenue growth than we expected. Combined with anticipated fourth quarter costs and expenses related to recent acquisitions, we are lowering our fiscal year 2012 EPS goal to $1.43 – $1.44.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 2.4% and in the first quarter, the figure rose 3.2%.

Revenue has risen the past four quarters. Revenue increased 5.2% to $521.8 million in the second quarter. The figure rose 7.3% in the first quarter from the year earlier and climbed 10.6% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 37 cents.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the fourth quarter is 43 cents per share, dropping from 44 cents a month ago. The average estimate for the fiscal year has remained at $1.44 per share.

Competitors to Watch: Henry Schein, Inc. , Chindex Intl., Inc. , Patterson Companies, Inc. , Owens Minor, Inc. , Lincare Holdings Inc. , Cardinal Health, Inc. , AmerisourceBergen Corp. .

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

Article source: http://finance.yahoo.com/news/pss-world-medical-inc-earnings-140105223.html

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