Hanger Inc. (NYSE:HGR), one of the leading United States companies that provides both orthotic and prosthetic care services to its clients, recently posted its second quarter’s financial results. Zacks estimated Hanger Inc.’s (NYSE:HGR) earnings to cross 53 cents. However, the earnings remained at 40 cents; a decrease of 23.1 percent can be seen when the figures are compared with the numbers of the same quarter a year back.

Coming to the adjusted earnings of Hanger Inc. (NYSE:HGR), the numbers dropped by 23.3 percent and reached to $14.2 million. Last year, the figures were around $18.5 million. The adjustments excluded the company’s acquisition costs as well as the expenses that the company incurred during the implementation of its new management clinic system.

Talking about the revenues of Hanger Inc. (NYSE:HGR), the figures increased by 3 percent and reached to $275.9 million, from a previously held 2013 figures of $267.8 million. Nonetheless, the numbers did not manage to meet Zacks estimates of $285 million.

Revenues generated from the Patient care business of Hanger Inc. (NYSE:HGR) saw an increase of 3 percent, on yearly basis, and reached to $232 million. The major portion of this increase came from the sales of acquired businesses.

Coming to the revenues of Product & Services sector, the fingers inched up by 3 percent and reached to $43.9. Gross profit margin of the company improved by 1.7 percent and reached to $191.6 million. The margin of adjusted operations dropped by 850 points and came down to 10.5 percent, from previous year’s margin of 16.3 percent. This increase in operating margin resulted due to a soar in costs and a reduction in the revenues.

Hanger Inc.’s (NYSE:HGR) cash equivalent came down by 50.3 percent and reached to $4.9, from an equivalent of $9.7 at the end of 2013. As far as the debt of the company is concerned, it increased by 15.3 percent and reached to $539.9 million: as a result, ratio of debt to capitalization increased by 240 points and reached to 47.1 percent.

The company’s operating cash flow was recorded to be at $7.5 million. It is important to note here that the figures were around $27.6 million last year. The decrease resulted due to a reduction in operating income and an increase in the requirement related to working capital as the capital costs increased by 20.2 percent and reached to $21.7 million.

Hanger Inc. (NYSE:HGR) lowered its yearly earnings predictions for 2014 from a range of $2.01-$2.11 to a range of $1.60-$1.70. Zacks, however, estimated the yearly earnings to reach $2.04.

The company also lowered down its revenue estimates to a range of $1,050 to $1,080 million from a previously predicted range of $1,100 to $1,120 million. Zacks estimated the revenues to be around $1,101 million by the end of the year. Hanger Inc. (NYSE:HGR), currently, holds a #3 Zacks rank with a rating of ‘Hold’. The company, on the last trade day, August 8, 2014, started its stocks at a price of $26 and closed at a reduced price of $22.48.

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