Omnicare Inc has a market cap of $3.76 billion; its shares were traded at around $34.14 with a P/E ratio of 12.2 and P/S ratio of 0.6. The dividend yield of Omnicare Inc stocks is 1.7%.
Highlight of Business Operations:Net sales for the three and nine months ended September 30, 2012 were positively impacted by drug price inflation and growth
Gross profit as a percentage of total net sales was 24.7% and 23.9% in the three and nine months ended September 30, 2012, versus 22.4% and 22.0%, respectively, in the comparable prior year periods. Gross profit was favorably affected by the increased availability and utilization of higher margin generic drugs, cost reduction and productivity improvement initiatives, the favorable dollar effect of drug price inflation, as well as growth in the SCG segment. Partially offsetting these factors was certain of the aforementioned items that, individually, served to reduce net sales, primarily the reductions in reimbursement coupled with competitive pricing issues , increased payroll and employee benefit costs in connection with the Company s initiatives to improve its organizational structure and a lower average number of beds served.
Omnicare s consolidated selling, general and administrative (“operating”) expenses as a percentage of net sales amounted to 13.6% and 13.1% in the three and nine months ended September 30, 2012 versus 12.4% and 12.4% , respectively, in the comparable prior-year periods. Operating expenses were unfavorably impacted by the increased payroll and employee benefit costs as well as other costs associated with Omnicare's initiatives to improve its organizational structure and customer service. Partially offsetting these factors was the continued progress in the Company s non-drug purchasing program. Also, negatively impacting the rate is the reduction in net sales due to the impact of the increased availability and utilization of generic drugs.
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