Back to top

Analyst Blog

Zacks Equity Research

WPO to Acquire Celtic Healthcare


 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at or call 800-767-3771 ext.  9339.

Recently, The Washington Post Company announced its intention of holding a majority interest in Celtic Healthcare Inc. – a company engaged in home healthcare and hospice services in the northeastern and mid-Atlantic regions. The financial terms of the acquisition was not revealed.

WPO’s step to acquire Celtic Healthcare will offer its customers a wide range of services in the healthcare industry. Management believes that the company is focusing on diversifying its business into many areas having individual identity of each business, but with a common goal and value for all.

WPO’s education and publishing industry has long been grappling mainly due to economic meltdown. The company recently posted second-quarter financial results, in which Education division’s revenue went down 9% to $558.4 million, and Newspaper Publishing revenue came in at $151.8 million, down 7% from the year-ago quarter.

As a result, to mitigate declining revenues and shrinking market share, WPO is taking initiatives to diversify its business model by adding new revenue streams for making itself less susceptible to economic conditions. Therefore, the company’s intention to acquire Celtic Healthcare is in sync with its current strategy of operating a diversified portfolio.

Moreover, management believes that the acquisition demonstrates the company’s focus on investing in companies that has solid earnings prospective in the long-term along with a good management team.

Formed in 1877 and based in Washington, D.C., The Washington Post Company is a diversified media and education company. Kaplan’s (company’s subsidiary) strength in recent years has come from both rapid internal growth and acquisitions.

These acquisitions include education businesses in overseas markets (Canada, Ireland, Australia and China). We expect Washington Post to continue the acquisition spree while focusing on profitability.

Currently, we maintain our long-term Neutral recommendation on the stock. However, The Washington Post Company, which faces stiff competition from The New York Times Company (NYT - Analyst Report), carries a Zacks #5 Rank, implying short-term Strong Sell rating for the next 1-3 months due to lack of any near-term catalyst.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%