Kindred Healthcare Earnings Preview

Watch Kindred Healthcare's (NYSE: KND  ) earnings report to see if it can beat analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Thursday, Feb. 23. Kindred Healthcare is a health-care services company which, through its subsidiaries, operates hospitals, nursing centers, and contract rehabilitation services across the United States.

What analysts say:

  • Buy, sell, or hold?: Analysts are bullish on this stock with five analysts rating it as a buy and only one rating it as a sell. Analysts like Kindred Healthcare better than competitor Sun Healthcare Group overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $1.57 billion in revenue this quarter. That would represent a rise of 37.7% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.36 per share. Estimates range from $0.34 to $0.41.

What our community says:
CAPS All-Stars are in strong support of the stock, with 96.3% assigning it an "outperform" rating. The community at large concurs with the All-Stars, with 93.8% awarding it a rating of "outperform." Even with a robust four out of five stars, Kindred Healthcare's CAPS rating falls a little short of the community's upbeat outlook.

Management:
Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Margins are a representation of how efficiently a company captures portions of sales dollars. Kindred Healthcare has seen a decrease in its operating margin year over year for the last two quarters. Operating margin measures what percentage of a company's revenue remains after factoring in the cost of running the business. Here is how Kindred Healthcare has been doing for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

33.4%

33.3%

35.5%

34.8%

Operating Margin

(0.1%)

0.8%

3.4%

2.9%

Net Margin

0.1%

(0.4%)

1.9%

1.8%

One final thing: If you want to keep tabs on Kindred Healthcare movements, and for more analysis on the company, make sure you add it to your Watchlist.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Earnings estimates provided by Zacks.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 1783968, ~/Articles/ArticleHandler.aspx, 7/26/2014 11:39:43 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement