Neither a Securities and Exchange Commission investigation nor a Senate Finance Committee inquiry into its billing practices dampened home health provider LHC Group’s third quarter earnings. The company bested by 3 cents analysts’ predictions of earnings of 70 cents per share, reporting net income of $13.3 million, compared with $9.8 million or 54 cents per share for the quarter ending Sept. 30, 2009.

The Lafayette-based health care group reported earnings after the market closed Monday, when its stock was already down 11 cents, having fallen to $26.79 per share. Its stock opened at $27.94 today and has already traded as high as $28.11.

LHC Group is among four publicly traded companies under investigation by the SEC for allegedly ordering unnecessary home visits in order to reach thresholds and trigger bonus Medicare reimbursements. The investigations were prompted by an April 2010 Wall Street Journal investigative report on the industry’s billing practices. The local company denies wrongdoing and says it is cooperating with investigators.

Earnings at LHC Group’s Baton Rouge based competitor, Amedisys, the initial target of the SEC investigation (along with Kentucky-based Almost Family), did not fare nearly as well in the third quarter. The company's profits fell 40 percent, compared with the same quarter last year.

LHC Group also announced Monday that its board authorized the repurchase of up to $50 million of its outstanding common stock. Under the plan, the company can repurchase shares from time to time for cash in open market purchases, and block transactions and privately negotiated transactions. This repurchase program may be modified or terminated by the company at any time and does not in any way obligate it to buy the shares.

“This stock repurchase program demonstrates the confidence we have in our company and shows our commitment to delivering long-term shareholder value,” CEO Keith Myers said. “Our strong balance sheet enables us to actively invest cash in areas that we believe will drive future value for shareholders, such as acquisitions and stock repurchases. ... While stock price will be one factor in our ongoing repurchase analysis, we will also review many other factors — all with the goal of continuing to deliver the best possible return for our shareholders.”

To post a comment, please log into your IND account. If you do not have an account, click the "register" button to create one. Facebook comments can be used as an alternative to creating an account at theIND.com.

Loading
Chart
ABiz Stock Watch
o Home Bancorp 22.64 ▲0.14 (0.62%)
o Frank's International 20.60 ▲0.22 (1.08%)
o IberiaBank Corp 65.98 ▼1.17 (-1.74%)
o LHC Group 23.74 ▼0.03 (-0.13%)
o MidSouth Bancorp 18.43 ▼0.07 (-0.38%)
o Petroquest Energy 4.38 ▲0.17 (4.04%)
o PHI Inc. 42.50 ▲1.44 (3.51%)
o Superior Energy 25.66 ▲0.59 (2.35%)
o Stone Energy 23.30 ▲0.72 (3.19%)
o Facebook Inc. 73.71 ▲0.11 (0.15%)
o Twitter Inc. 40.03 ▲0.22 (0.55%)
o Gannett 31.45 ▼0.13 (-0.41%)
NYSE:HBCP

Home Bancorp

Company ID [NYSE:HBCP] Last trade:22.64 Trade time:4:00PM EST Value change:▲0.14 (0.62%)
NYSE:FI

Frank's International

Company ID [NYSE:FI] Last trade:20.60 Trade time:4:02PM EST Value change:▲0.22 (1.08%)
NYSE:IBKC

IberiaBank Corp

Company ID [NYSE:IBKC] Last trade:65.98 Trade time:4:00PM EST Value change:▼1.17 (-1.74%)
NYSE:LHCG

LHC Group

Company ID [NYSE:LHCG] Last trade:23.74 Trade time:4:00PM EST Value change:▼0.03 (-0.13%)
NYSE:MSL

MidSouth Bancorp

Company ID [NYSE:MSL] Last trade:18.43 Trade time:4:01PM EST Value change:▼0.07 (-0.38%)
NYSE:PQ

Petroquest Energy

Company ID [NYSE:PQ] Last trade:4.38 Trade time:4:00PM EST Value change:▲0.17 (4.04%)
NYSE:PHII

PHI Inc.

Company ID [NYSE:PHII] Last trade:42.50 Trade time:3:48PM EST Value change:▲1.44 (3.51%)
NYSE:SPN

Superior Energy

Company ID [NYSE:SPN] Last trade:25.66 Trade time:4:04PM EST Value change:▲0.59 (2.35%)
NYSE:SGY

Stone Energy

Company ID [NYSE:SGY] Last trade:23.30 Trade time:4:02PM EST Value change:▲0.72 (3.19%)
NYSE:FB

Facebook Inc.

Company ID [NYSE:FB] Last trade:73.71 Trade time:4:00PM EST Value change:▲0.11 (0.15%)
NYSE:TWTR

Twitter Inc.

Company ID [NYSE:TWTR] Last trade:40.03 Trade time:4:01PM EST Value change:▲0.22 (0.55%)
NYSE:GCI

Gannett

Company ID [NYSE:GCI] Last trade:31.45 Trade time:4:02PM EST Value change:▼0.13 (-0.41%)
Advertisement

Read the Flipping Paper!

Click Here for the Entire Print Version of
ABiz
 
Advertisement
Advertisement