RadNet Reverses Loss in Fourth QuarterMonday, March 3, 2014
Shares of RadNet Inc. jumped 18 percent on Monday after the medical imaging services company said it reported a profitable fourth quarter.
The Los Angeles operator of diagnostic imaging centers reported net income of $1.2 million (3 cents a share), compared with a net loss $4.0 million (-10 cents) in the same period a year earlier. Revenue rose 12 percent to $178 million.
Analysts surveyed by Capital IQ on average expected the company to report a 1 cent a share net loss on revenue of $173 million.
In full-year guidance, RadNet expects to report revenue in a range of $700 million to $730 million, compared with the analysts’ average of just under $700 million.
The company operates a national network of 250 owned centers, with its core markets in California and the northeastern United States. The company in December said that due to planned reductions and other changes to the Medicare reimbursement rates, it would need to cut annual operation costs by $30 million.
“Our 2014 guidance reflects our confidence in achieving at least $20 million of these costs savings," Dr. Howard Berger, chief executive, said in a statement.
He said the company projects a soft first quarter because the cold weather would likely cause people to postpone medical visits and procedures.
Shares closed up 35 cents, or 18 percent, to $2.29 on the Nasdaq.