Oppenheimer Adjusts HMA EPS Estimates

Health Management Associates Inc. HMA reported Q1:11 adjusted EPS from continuing operations of $0.22, “$0.01 above our estimate and Street consensus of $0.21,” Oppenheimer reports. “Helping drive the top line was the $650M of annualized revenues acquired since late '09,” Oppenheimer writes. “Furthermore, bad debt expense of 12.1% (-10 bps sequentially) was at the low end of HMA's expected FY2011 range (12.0-13.0%). “As a result, HMA increased its FY2011 EPS guidance to $0.74-$0.78 per diluted share (from $0.72-$0.76), which does not include any upside from potential 2011 acquisitions. Therefore, we are increasing our 2011 and 2012 EPS estimates to $0.76 and $0.86 from $0.74 and $0.84, respectively.” Health Management Associates closed Monday at $10.39.