Gentiva Health, Inc.

Gentiva Health Services, Inc. (GTIV - Analyst Report)has continued its streak by announcing its third consecutive earnings surprise. Estimates are climbing and shares are trading at a great value.

Company Description

Gentiva Health Services, Inc. operates its health services business in the United States and provides specialty pharmaceutical services, including infusion therapy and distribution services, and home health care services.

Company headquarters are in Melville, New York, it has about 6,500 employees, and carries a market cap of over $700 million.

Beat the Street Again

On Feb 18 Gentiva announced fourth-quarter results that included earnings per share of 44 cents. That number is up 42% over the 31 cents reported in the same quarter last year. Income was driven by a 20% boost in revenue and a 39% increase in operating contribution.

The EPS number of 44 cents was 13% above Wall Street's consensus estimate of 39 cents. This is the third consecutive surprise for the healthcare company.

Raised Guidance

In the same announcement, Gentiva also updated its full-year its 2009 outlook. Earnings per share for full-year 2009 are expected to be between $1.72 and $1.80, up from $1.62 and $1.72, since the last earnings announcement.

Analysts have upped their estimates, given the revised guidance. Full-year 2009 estimates are up 10 cents to $1.76.

The Chart

Shares of GTIV have dropped sharply during the markets latest sell off. The stock is now trading at appealing valuations. With a forward P/E of under 10 and a PEG near 0.6, shares are hard to resist. Below is a chart with share price and full-year estimates. The consensus has been rising steadily.