BioScrip, Inc. BIOS reported net loss from continuing operations of 17 cents per share in the first quarter of 2016, reflecting a year-over-year improvement of 39.2%. The Zacks Consensus Estimate for the quarter was of a loss of 12 cents, wider than the company’s quarterly number.Bioscrip Inc. - Earnings Surprise | FindTheCompany Revenues Prime Line With the completion of the company’s non-core PBM business divestment (treated as discontinued operation in the previous quarter), BioScrip currently has a simplified business structure focused on core Infusion Services.Revenues from continuing operations in the reported quarter dropped 2.4% year over year to $238.5 million, but surpassed the Zacks Consensus Estimate of $232 million. The year-over-year decline was anticipated by the company owing to the planned shift in revenue mix to greater core infusion revenue business composition from lower margin chronic infusion revenue.Gross profit during the first quarter was $64.2 million, down 1.1% year over year. Gross margin, however, expanded 35 basis points (bps) year over year to 26.9%. Adjusted operating income was pegged at $53.2 million, up a marginal 0.1% year over year on a 5.5% drop in general and administrative expenses to $11.1 million. Adjusted operating margin expanded 51 bps to 22.3% year over year.FinancialsBioScrip exited the first quarter of 2016 with cash and cash equivalents of $8.1 million, up from $15.6 million at the end of 2015. In addition, the company currently has $46.6 million of undrawn capacity available on its revolving credit facility.GuidanceBioScrip has once again reiterated its full-year 2016 guidance. The company’s EBITDA guidance still stands at $50–$60 million. Revenues for 2016 are projected between $730 million and $760 million.Diluted loss per share for 2016 is expected in the range of 19–39 cents. The current Zacks Consensus Estimate for loss is pegged at 21 cents per share.Our TakeBioScrip posted a mixed first-quarter 2016 performance, with the top line exceeding our estimate and the bottom line missing the same. We are encouraged by the company’s progress with its multi-faceted strategic plan, which was adopted to improve its financial position. This enabled it to emerge as a major player in the infusion services space. Further, BioScrip’s divestment of its non-profitable PBM business comes across as a prudent move. However, the company’s sluggish gross as well as operating margin figure in the reported quarter adds to our concerns.Zacks RankCurrently, BioScrip holds a Zacks Rank #4 (Sell). Some better-ranked stocks in the medical sector are Almost Family Inc. AFAM, HEALTHSOUTH Corp. HLS and US Physical Therapy Inc. USPH. All the three stocks hold a Zacks Rank #2 (Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HEALTHSOUTH CP (HLS): Free Stock Analysis Report US PHYSICAL THR (USPH): Free Stock Analysis Report ALMOST FAMILY (AFAM): Free Stock Analysis Report BIOSCRIP INC (BIOS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research