LHC Group disappointed Wall Street with a dismal third quarter that fell far short of analysts expectations and the same quarter last year.
The Lafayette, LA-based provider of home care and hospice services earned $1.06 per adjusted diluted share for the quarter ended September 30 on revenues of $576.9 million. The company earned $1.45 a share on revenues of $565.5 million during the same period last year. Wall Street forecast $1.32 a share on revenues of $612 million.
This was the third consecutive quarter this year that LHC Group has struggled against ongoing headwinds from the COVID-19 pandemic. In previous quarters, executives cited staff quarantines and high costs from contract workers for the drag on earnings. However, executives offered no comment on its third quarter performance due to the pending acquisition of LHC Group by UnitedHealth Group.
The company’s home health and hospice services improved during the quarter compared to the same period last year, but its home-and-community-based services and facility-based services were a drag on earnings.
UnitedHealth Group announced in March it would acquire LHC Group for $5.4 billion. The deal is expected to close sometime by the end of this year.