Vision Twenty-One Shares Falls 1998 Profit Outlook Questioned
Largo, Florida, May 8 (Bloomberg) -- Vision Twenty-One Inc.
shares fell as much as 34 percent after the company told analysts
higher-than-expected operating costs could squeeze near-term
profits for the remainder of 1998.
Vision, a management company for eye-care providers, dropped
2 7/16 to 8 5/16 in late trading of 2.42 million, more than 23
times the three-month daily average. Earlier, the shares touched
7 1/8.
While Vision reported first-quarter results in line with
analysts' estimates, in a conference call with analysts this
morning it signaled ''less operating leverage and more overhead
expenditures than anticipated for the balance of 1998'', said
Chris McFadden, an analyst at Wheat First Union.
''What we're seeing is an attempt to be as opportunistic as
possible with regards to acquisitions and consolidation,'' he
said. ''But moving aggressively has negatively affected the
company's profitability in the near term.''
As a result, Vision's 1998 earnings forecast of 73 cents a
share probably will be reduced ''into the 60's,'' he said.
The Largo, Florida-based company said earnings before a
charge and merger costs was $1.50 million, or 11 cents a diluted
share, compared with a loss of $238,000, or 4 cents, in the year-
earlier period. McFadden said earnings for the latest quarter
were in line with his estimate.
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