The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kindred Healthcare missed estimates on revenues and whiffed on earnings per share.
Compared with the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Kindred Healthcare reported revenue of $1.52 billion. The five analysts polled by S&P Capital IQ wanted to see a top line of $1.58 billion on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $1.14 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.27. The six earnings estimates compiled by S&P Capital IQ anticipated $0.36 per share on the same basis. GAAP EPS were -$1.40 for Q4 versus $0.52 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.1%, 170 basis points worse than the prior-year quarter. Operating margin was 2.4%, 50 basis points worse than the prior-year quarter. Net margin was -4.7%, 650 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.61 billion. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $6.38 billion. The average EPS estimate is $1.65.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 137 members out of 147 rating the stock outperform, and 10 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Kindred Healthcare a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kindred Healthcare is outperform, with an average price target of $17.63.
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