Two Orange County-based nursing home companies on Thursday set financial guidance for 2011, with one boosting and the other reaffirming its 2010 outlook.
Irvine-based Sun Healthcare Group Inc. and Skilled Healthcare Group Inc. of Foothill Ranch cited changes to Medicare payments and general growth as reasons for boosting their outlooks.
Investors sent Skilled shares up 14% in Thursday trading with a market value of $411 million, while Sun’s shares were up 3% with a market value of $342 million.
Sun said in a release that it expects its 2011 profit to come in at $259 million to $265 million on an earnings before interest, taxes, depreciation, amortization and rent basis. The company also said it expected a profit of $33.8 million to $37.7 million, based on an anticipated outstanding share count of 26 million.
As for 2010, Sun said it continues to believe that its profit on an earnings before interest, taxes, depreciation, amortization and rent basis would come in at the high end of a previously announced range of $244 million to $250 million.
Skilled said it expects its 2011 profit to come in at $45.4 million to $49.1 million, above Wall Street’s expectation of $33.5 million.
Revenue’s seen as coming in at $880 million to $900 million, above analyst projections of $857.1 million.
As for 2010, Skilled now expects adjusted profit of $37.6 million to $38.7 million, up from a previous forecast of $34.2 million to $36.1 million.
Analysts expect Skilled to make $35.7 million in 2010.
Skilled said it sees 2010 revenue coming in at $816 million to $819 million, up from earlier projections of $805 million to $812 million. Wall Street expects Skilled’s revenue to come in at $810.5 million.
