The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Providence Service met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Providence Service recorded revenue of $244.3 million. The three analysts polled by S&P Capital IQ looked for sales of $244.4 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $219.3 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 $0.22. The two earnings estimates compiled by S&P Capital IQ forecast $0.23 per share. GAAP EPS of $0.22 for Q4 were 42% lower than the prior-year quarter's $0.38 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 9.2%, 270 basis points worse than the prior-year quarter. Operating margin was 2.9%, 220 basis points worse than the prior-year quarter. Net margin was 1.2%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $249.7 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $1.28.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 71 members rating the stock outperform and 20 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Providence Service 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 Providence Service is outperform, with an average price target of $15.67.
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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.