The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Hanger beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins contracted, net margins increased.
Hanger booked revenue of $272.2 million. The five analysts polled by S&P Capital IQ expected revenue of $267.7 million on the same basis. GAAP reported sales were 9.7% higher than the prior-year quarter's $248.1 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 $0.58. The five earnings estimates compiled by S&P Capital IQ averaged $0.56 per share. GAAP EPS of $0.62 for Q4 were 17% higher than the prior-year quarter's $0.53 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 38.3%, 30 basis points worse than the prior-year quarter. Operating margin was 14.5%, 480 basis points worse than the prior-year quarter. Net margin was 8.0%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $231.1 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $1.04 billion. The average EPS estimate is $2.00.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 104 members out of 110 rating the stock outperform, and six members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 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 $31.67.
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