The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Emeritus met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP loss per share improved.
Margins contracted across the board.
Emeritus chalked up revenue of $324.1 million. The four analysts polled by S&P Capital IQ looked for sales of $326.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $283.8 million.
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 -$0.56. The five earnings estimates compiled by S&P Capital IQ anticipated -$0.33 per share on the same basis. GAAP EPS were -$0.63 for Q4 versus -$0.36 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 32.3%, 240 basis points worse than the prior-year quarter. Operating margin was 5.5%, 150 basis points worse than the prior-year quarter. Net margin was -8.6%, 330 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $328.1 million. On the bottom line, the average EPS estimate is -$0.36.
Next year's average estimate for revenue is $1.33 billion. The average EPS estimate is -$1.21.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 40 members out of 62 rating the stock outperform, and 22 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Emeritus a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Emeritus is buy, with an average price target of $22.50.
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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