Pediatrix Medical 3Q profit slides 6 percent

FORT LAUDERDALE, Fla. - Health care services company Pediatrix Medical Group Inc. said Wednesday its third-quarter profit fell 6 percent on lower patient volume and reimbursements.

Still the results met Wall Street forecasts. In October, the company cut its third-quarter profit guidance and said it could no longer stand by its fourth-quarter outlook because of lower reimbursements.

Pediatrix focuses on clinical care for babies born prematurely, for expectant mothers and anesthesia care services.

During the quarter ending Sept. 30, the company earned $37.4 million, or 81 cents per share, meeting revised profit guidance. The results mark a decrease from profit of $39.6 million, or 79 cents per share, a year earlier. In the 2007 quarter, the company posted earnings from continuing operations — which excludes results from businesses that have been, or are in the process of being sold — of $38.8 million, or 77 cents per share. There were just over 4 million less shares during the most recent period.

Revenue rose 15 percent to $267.2 million from $233.1 million from buyouts and office-based physician practices.

Analysts polled by Thomson Financial expected profit of 81 cents per share on revenue of $258.8 million.

Meanwhile, operating expenses increased 20 percent to just under $205 million, while the company's investment income plunged to $487,000 from $2.1 million.

In September, Pediatrix said it would change its name in 2009 to Mednax to reflect the expansion of its services beyond pediatric and maternal health care services. It will also change its symbol to "MD" from "PDX" on the New York Stock Exchange.

Shares of Pediatrix shed 87 cents, or 2.5 percent, to $35.62 in morning trading as the company set fourth-quarter profit guidance below Wall Street forecasts.

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