Roundup: Coventry, Gemini, Liquidity Services
From staff and wire reports
*Coventry Health Care reduced its second-quarter and full-year earnings forecasts after costs came in higher than expected in April and May. "We are very disappointed with the April and May 2008 results and their anticipated effect on the second quarter and the full year," the Bethesda company said in a statement.
The managed-care provider said it now expects profit of $3.65 to $3.75 per share on revenue of $10.48 billion to $10.7 billion. In April, the company had told Wall Street to expect profit of $4.39 to $4.50 per share on revenue of $11.99 billion to $12.49 billion.
For the second quarter, the company anticipates profit of 52 cents to 57 cents per share and revenue of $2.95 billion to $3 billion. In April, Coventry forecast earnings of $1.03 or $1.04 per share, with revenue between $2.95 billion and $3.1 billion.
Coventry blamed the shortfall on several factors, including a higher-than-anticipated loss ratio on its Medicare business and higher costs at its commercial group risk unit.
*Gemini Air Cargo sought bankruptcy protection from creditors for a second time in two years. The airport-to-airport service provider, based in Dulles, listed debt and assets of $100 million to $500 million in Chapter 11 documents filed today in U.S. Bankruptcy Court in Miami. The carrier didn't provide an explanation for the cause of the filing.
*Shares of Liquidity Services of the District (LQDT) gained 89 cents, or 8.2 percent, to close at $11.74 after the company said it is the winning bidder for a Defense Department contract.
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