BioReference Labs slumps after guidance update

|By:, SA News Editor

BioReference Laboratories (BRLI -20.8%) plunges after providing Q4 and FY13 guidance.

"Despite continued strong volume growth, the Company believes there is an ongoing recalibration of reimbursement for the industry, which has resulted in substantial downward pressure from many payers regarding reimbursement," the company says, adding that it has "had to negotiate contract modifications to reimbursement rates, conditions of payment and / or eligibility with dozens of health plans representing a substantial numbers of lives nationwide."

Q4 patient volume seen at +15% Y/Y. Q4 revenue per patient for non-genetic test seen -4% versus Q3.

Q4 outlook: $0.40/share on revenue of $192M.

FY outlook: $1.65/share.

BLRI also says it "expects that guidance for 2014 will call for an increase in net revenues of 10%, an increase in patient volume of 10% and an increase in net income of 10%." (PR)