Omnicare, Inc. (NYSE:OCR) was trading down nearly 8% Thursday after the company reported a drop in second-quarter revenue, fueled primarily by low prescription volumes that were brought about by declines in occupancy rates.
The provider of pharmaceutical care for the elderly posted a net income of $11.6 million, or 18 cents or a share, compared with $50.8 million, or 36 cents a share, in the same quarter last year, and falling below average analyst estimates of 62 cents.
Revenue for the Covington, Kentucky-based company was $1.52 billion, compared with $1.54 billion in the prior year quarter, and narrowly missing the Street’s view of $1.53 billion.
Omnicare CEO John L. Workman said the second quarter results were impacted by deceleration in prescription volumes in its institutional pharmacy business, a result of lower occupancy rates within certain customer facilities.
Despite the weak results, Workman said the company is “committed” to devising strategies to grow its customer base “more effectively,” which will subsequently increase prescription volumes.