Omnicare Inc.

Omnicare, Inc. (OCR - Snapshot Report) recently announced its full-year results and forecasts for next year are on the rise.

Company Description

Omnicare, Inc., is a leading provider of pharmaceutical care for the elderly. The company serves residents in long-term care facilities and other chronic care settings comprising beds in fourteen states, the District of Columbia and Canada. Omnicare is the largest U.S. provider of professional pharmacy, related consulting and data management services for skilled nursing, assisted living and other institutional healthcare providers as well as for hospice patients in homecare and other settings.

Omnicare's pharmacy services also include distribution and patient assistance services for specialty pharmaceuticals. Omnicare offers clinical research services for the pharmaceutical and biotechnology industries in thirty countries worldwide.

Five Consecutive Surprises

On Feb 26 Omnicare released fourth-quarter and full-year results that included earnings per share of 66 cents. The number was 3 cents higher than Wall Street expected making it the fifth consecutive earnings surprise.

While full-year sales increased marginally, to $6,311 million from $6,220 million, net income grew by 37%. Income for 2008 was $156 million, up from $114 million.

Analysts are Bullish

Following the most recent earnings announcement, a vast majority of analysts have been upwardly revising their estimates. 8 of 9 covering analysts upped their forecast for 2009, which now average $2.55 per share up from $2.39 one month ago.

The 2009 consensus is calling for just over 20% earnings growth and another 10% in 2010.

Shares Trading at a Discount

A share of OCR is only going to cost an investor 8 times forward earnings and the PEG ratio is just 0.6.

The Chart

Full-year estimates are turning around. As you can see in the price and consensus chart below, forecasts had declined steadily, but are now back on the rise.

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