Gentiva Health Services gives 2nd-quarter outlook, urges shareholders to reject Kindred offer

Gentiva Health Services issued a solid second-quarter forecast Wednesday, and said that bolsters its case that Kindred Heathcare's offer to buy it is too low.

The Atlanta company is forecasting adjusted net income of 33 cents per share attributable to common shareholders, and said its revenue will be around $496 million. FactSet says analysts expect net income of 22 cents per share and $497.1 million in revenue.

A year ago Gentiva reported an adjusted profit of 22 cents per share and $414.4 million in revenue.

The company also backed its guidance for the year, forecasting adjusted net income of 85 cents to $1.15 per share and $1.9 billion to $2.1 billion. Analysts are projecting 88 cents per share and $1.98 billion on average.

Gentiva said the results reflect the changes and strategic investments it has made over the last year. It added that Kindred's offer for the company, which values it at $14.50 per share in cash, doesn't reflect the full value of those moves. Gentiva's board has rejected two offers from Kindred Healthcare Inc., and Kindred is now urging Gentiva shareholders to support its bid.

The company is scheduled to report its second-quarter results on Aug. 5.

Shares of Gentiva Health Services Inc. rose 10 cents to $15.55 in midday trading.