Almost Family Inc. (AFAM) is in an industry that is in demand despite the slowing economic environment.

AFAM provides home health nursing, rehabilitation and personal care services in 11 states. The company has two segments: Visiting Nurse (VN) and Personal Care (PC). Visiting Nurse provides skilled nursing and physical, occupational and speech therapy. Personal Care includes custodial and personal care services.

AFAM Reports Record Second Quarter

As other companies are feeling the pain from the challenging economic conditions, Almost Family recently posted a record second quarter that saw net income soar 95% to $3.9 million, or 50 cents per share, compared to $2 million a year ago. However, the company added 2,512,500 shares in the second quarter of 2008 with a common stock offering that netted $41.8 million.

The company beat Wall Street estimates by 31.58% for the second quarter and has beaten estimates 3 out of the last 4 quarters by an average of 21.80%.

AFAM reported a large jump in service revenues. It rose by 50% to $48.7 million. The Visiting Nurse segment saw revenues soar 66% to $38.9 million from $23.5 million in the second quarter of 2007. $7.6 million could be attributed to acquired operations, as the company completed the acquisition of Patient Care, Inc.

Personal Care also got into the game, growing 9% to $9.8 million from $9 million in 2007.

Analysts Continue to Be Bullish

Covering analysts are upbeat about AFAM. 2008 year over year earnings growth estimates are up 35%. Sales are expected to grow 10.49%.

Estimates for the third quarter and the full year are higher in the last month. Third quarter estimates rose a penny to 45 cents from 44 cents. Similarly, for the full year, consensus estimates climbed to $1.89 from $1.88 per share.

Almost Family’s Solid Fundamentals

AFAM is a Zacks #1 Rank (Strong Buy). The company has a forward P/E of 19.24. It has an outstanding one year return on equity (ROE) of 22.2%.

“SENR” Free Stock Analysis: Buy? Sell? Hold?
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