VCA Antech Inc. reported a 35 percent increase in second quarter profit, which the company attributed to higher sales at its animal hospitals and the absence of a large expense that hurt results last year. Earnings met Wall Street expectations, but revenue fell short.
After the markets closed on Thursday, the Los Angeles operator of veterinary hospitals and laboratories reported net income of $39.6 million (45 cents per share), compared with $29.4 million (34 cents) a year earlier. The year-earlier results included a charge of $14.5 million for future estimated executive compensation.
Second quarter net revenue increased 6.3 percent to $376 million.
Analysts surveyed by Capital IQ on average expected per-share profit of 44 cents on revenue of nearly $383 million.
Animal hospital gross revenue rose nearly 9 percent to $291 million. The growth was largely driven by acquisitions made in the past 12 months, since same-store revenues were down 1.9 percent. Organic growth drove a 1.7 percent increase in laboratory gross revenue to $84.4 million. Sales in the company’s medical technology unit, which sells diagnostic equipment to veterinary clinics, rose 11 percent to $16.2 million.
“We are pleased in our ability to successfully manage expenses,” said Chief Executive Bob Antin.
Shares earlier closed down 20 cents, or 1 percent, to $19.89 on the Nasdaq, and fell 2.4 percent in after-hours trading.