Psych Solutions misses Q3

Company drops 2009 guidance below low end of previous estimate; shares set for big drop

Email | Print By Erin Lawley

Behavioral health care company Psychiatric Solutions posted lower-than-expected third-quarter results for the third quarter today, pushing the company to drop its guidance for the rest of the year.

The Franklin-based company had revenue of $455 million and income of $28.1 million, or 50 cents per diluted share, for the quarter ended Sept. 30. In the third quarter last year, those numbers were $431.7 million, $27.6 million and 49 cents per diluted share, respectively.

Analysts had pegged Psych Solutions’ quarterly revenue at about $462 million and income at 56 cents per share.

Joey Jacobs, Psych Solutions president and CEO, said in a statement that quarterly results did not meet expectations due to several factors:

“In addition to the impact of the Labor Day holiday occurring a week later than in the third quarter of 2008, our revenue growth was affected by a lower than expected increase in revenue per patient day of 1.7% due to adverse changes in our payor mix. Lastly, our management contract segment’s earnings were lower than anticipated,” he said.

The company lowered its earnings guidance for the full year to a range of $2.11 to $2.14 per share from the previous range of $2.16 to $2.24 per share. Its shares (Ticker: PSYS) took a dive in after-hours trading, falling more than 12 percent to its lowest level since late June.