Irvine-based Sun Healthcare Group Inc. on Friday offered new financial guidance, with a significant drop in revenue and earnings now in its full-year outlook.
The nursing home operator had withdrawn its previous guidance in August to give it time to look at how a Medicare reimbursement cut would affect its operations.
Sun said it now expects its 2011 profit to come in at $21.7 million to $24.6 million, compared with a previous range of $34.1 million to $38 million.
Analysts expect Sun’s full-year profit to be $27.5 million.
The nursing home company said it expects full-year revenue of $1.925 billion to $1.945 billion, compared with a previous expected range of $1.95 billion to $1.995 billion.
Wall Street projects Sun’s revenue to come in at $1.94 billion.
Sun and its competitors will be working under rules that cut Medicare payments to nursing homes by an average of 11.1% effective Saturday.
Sun’s shares were down more than 11% in afternoon New York trading Friday on a recent market value of about $68 million.
