The 10-second takeaway
For the quarter ended Dec. 31 (Q4), LHC Group beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Margins shrank across the board.
LHC Group booked revenue of $157.7 million. The 10 analysts polled by S&P Capital IQ anticipated a top line of $156.0 million on the same basis. GAAP reported sales were 6.2% lower than the prior-year quarter's $168.1 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 $0.39. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.35 per share. GAAP EPS of $0.39 for Q4 were 38% lower than the prior-year quarter's $0.63 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 43.3%, 460 basis points worse than the prior-year quarter. Operating margin was 9.0%, 470 basis points worse than the prior-year quarter. Net margin was 4.6%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $158.0 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $642.9 million. The average EPS estimate is $1.51.
The stock has a five-star rating (out of five) at Motley Fool CAPS. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give LHC Group a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LHC Group is outperform, with an average price target of $15.72.
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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. 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.