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Two notes from the Buy List to pass on. First, Lincare (LNCR) reported third-quarter earnings of 76 cents a share, which beat estimates by four cents a share. The company earned 66 cents a share for last year’s third quarter, so that’s pretty decent growth. Earnings were squeezed by a 6% cut in Medicare prices.

There’s also some trouble on the horizon.

Revenue and earnings also were impacted by a change in ordering patterns for certain inhalation drugs by customers worried they were going to lose Medicare coverage for these drugs. Some patients placed large orders in June in an effort to get their drugs ahead of the Medicare change, which has since been delayed until Nov. 1.

Wall Street currently sees Lincare’s 2009 earnings falling by 27%.

The other news is that WR Berkley (WRB) said it expects to post a loss for the third quarter between 15 and 20 cents a share. Operating earnings, which is more important for insurance companies, will be between 70 and 75 cents a share. The company is taking an after-tax loss due to the hurricanes. The company also got screwed from owning preferred stock in Fannie and Freddie. WR Berkley is already up about 40% from its panic low on October 10.

Posted by edelfenbein at October 21, 2008 12:26 PM