Skilled Healthcare Group Meets on Revenues, Misses on EPS

Skilled Healthcare Group (NYSE: SKH  ) reported earnings on Feb. 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Skilled Healthcare Group met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share shrank significantly.

Margins contracted across the board.

Revenue details
Skilled Healthcare Group notched revenue of $219.2 million. The eight analysts polled by S&P Capital IQ expected revenue of $219.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.16. The nine earnings estimates compiled by S&P Capital IQ averaged $0.19 per share. GAAP EPS of $0.15 for Q4 were 21% lower than the prior-year quarter's $0.19 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 13.3%, 190 basis points worse than the prior-year quarter. Operating margin was 7.8%, 160 basis points worse than the prior-year quarter. Net margin was 2.6%, 60 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $223.6 million.

Next year's average estimate for revenue is $896.7 million. The average EPS estimate is $0.80.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 129 members out of 138 rating the stock outperform, and nine members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Skilled Healthcare Group a green thumbs-up, and two give it a red thumbs-down.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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.


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