Specialty pharmacy services provider,
BioScrip Inc.
(
BIOS
) reported EPS of 12 cents in the fourth quarter of fiscal 2011,
much better than the year-ago quarter loss of $1.25 per share.
Reported results also surpassed the Zacks Consensus Estimate of 9
cents. However, the company in the year-ago quarter recorded a
non-cash charge for deferred tax asset reserve of $54 million.
Fiscal 2011 EPS stood at 14 cents versus a loss of $1.37 per
share in fiscal 2010. The adjusted EPS for the year came in at 33
cents missing the Zacks Consensus Estimate of 36 cents.
BioScrip primarily operates through two segments - Infusion and
Home Health Services and Pharmacy Services. Total revenue in the
reported quarter stood at $483.3 million, up 7.3% year over year
and above the Zacks Consensus Estimate of $460 million. For the
full year, total revenue came in at $1.8 billion, in line with the
Zacks Consensus Estimate and up 12.5% year over year.
The solid revenue growth in the reported quarter was
attributable to a 7.1% rise in Pharmacy Services revenue to $361.7
million and an 8% increase in Infusion/Home Health Services revenue
to $121.6 million.
Gross profit during the quarter increased 12.6% to $81.8 million
leading to an 80 basis points (bps) expansion in gross margin to
16.9%. Adjusted operating margin for the quarter was 4.4% compared
with 2.8% in the year-ago quarter.
BioScrip's operating cash flow of $27.0 million in fiscal 2011
compared favorably with $21.4 million in 2010. This was due to
a decrease in working capital requirements of $23.1 million and an
increase of $25.3 million in net income adjusted for non-cash
items.
The company faces significant competition in the pharmaceutical
healthcare services industry from the likes of
CVS Caremark
(
CVS
) and
Express Script
(
ESRX
) as well as many smaller organizations that operate on a local or
regional basis.
BioScrip is gradually witnessing continued expansion in the top
line. The company has started to expand its footprint in the
domestic market based on the CHS acquisition. Moreover, the company
has been taking several steps to emphasize more on areas with
long-term growth potentials and high returns.
Also its recent decision to divest a part of its pharmacy
business to
Walgreen
(
WAG
) is expected to enable the company to invest more in Infusionand
Home Health segment where it holds a competitive advantage.
BioScrip presently retains a short-term Zacks #3 Rank (Hold).
Over the long term, we have a Neutral recommendation on the
stock.
BIOSCRIP INC (
BIOS
): Free Stock Analysis Report
CVS CAREMARK CP (
CVS
): Free Stock Analysis Report
EXPRESS SCRIPTS (
ESRX
): Free Stock Analysis Report
WALGREEN CO (
WAG
): Free Stock Analysis Report
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