The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Hanger missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Gross margins dropped, operating margins grew, net margins grew.
Hanger tallied revenue of $243.5 million. The five analysts polled by S&P Capital IQ wanted to see net sales of $250.2 million on the same basis. GAAP reported sales were 3.5% higher than the prior-year quarter's $235.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.50. The five earnings estimates compiled by S&P Capital IQ predicted $0.50 per share. GAAP EPS of $0.50 for Q3 were 11% higher than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.4%, 20 basis points worse than the prior-year quarter. Operating margin was 14.5%, 110 basis points better than the prior-year quarter. Net margin was 7.1%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $264.0 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $984.0 million. The average EPS estimate is $1.78.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 105 members out of 111 rating the stock outperform, and six members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Hanger a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hanger is buy, with an average price target of $31.80.
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