Apria Outlook Upgraded by S & P
Standard & Poor’s said Monday that it revised its outlook on Apria Healthcare Group Inc. to stable from negative, a reflection of how the Costa Mesa-based provider of home health care services has improved its operating performance.
The rating was the latest of several favorable assessments in recent months for the company, which has posted profits for the last two quarters after sustaining more than a year of losses.
The stock has moved up as well, surging from under $3 a share last October to $22.06 a share in June. On Monday, the shares closed at $16.81, up 13 cents.
In elevating its rating, Standard & Poor’s cited Apria’s improved operations and more financial flexibility, allowing it to cope with pricing limitations.
As a leading provider of home health care services, Apria should be able to withstand “increasing cost-containment pressures.â€
In January, for example, Apria absorbed a 5% cut in Medicare reimbursements for oxygen treatments.
The company also has been shedding money-losing operations. Apria provides respiratory therapy, home infusion, and home medical equipment through 320 branches serving patients in all 50 states.
Last week, analyst Michael J. Weber at Prudential Vector Healthcare Group raised his rating of Apria shares to “strong buy†from “accumulate.â€
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Apria Health Improving
Apria Healthcare Group Inc.’s financial condition is improving, and the stock has responded with a strong move up this year. Weekly closing prices:
Jan. 1: $8.94
May 28: 20.63
Monday close $16.81
Source: Bloomberg News
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