HCF-Bloomberg story
HealthCare Financial Shares Fall on Weaker 4th-Qtr Margins
Chevy Chase, Maryland, Feb. 9 (Bloomberg) -- HealthCare Financial Partners Inc. shares fell 17 percent on concern the finance company's profit margins had weakened in the fourth quarter.
The stock fell 5 3/4 to 27 1/2, the lowest close since Oct. 21. They fell as low as 25 3/4 on 1.6 million shares traded, more than the 97,320 daily average over the last three months before today.
Chevy Chase, Maryland-based HealthCare Financial, which provides financing to doctors, hospitals and other healthcare providers, said fourth-quarter earnings almost doubled to $5.8 million, or 42 cents a share, from $3.0 million, or 30 cents, in the 1997 period. Per-share results beat the average estimate of 40 cents from eight analysts in a First Call Corp. survey.
Jerry Robinson, an analyst at Stephens Inc., said the company's profit margin narrowed to 14.7 percent in the fourth quarter from 16.2 percent for all of 1998. ''Their margins were weaker because not as many people refinanced their real estate loans,'' Robinson said. ''But it's hard to be disappointed with their overall performance.'' The decline in the share price ''was extremely overdone,'' he said.
Joseph A. Jolson, an analyst at Nationsbanc Montgomery Securities, reiterated his ''buy'' recommendation on the stock.
The company said net finance receivables rose 75 percent to $427.1 million in the fourth quarter, while fee and interest income rose 54 percent to $15.1 million.
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