The 10-second takeaway
For the quarter ended March 31 (Q1), HealthSouth beat expectations on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.
Gross margins shrank, operating margins improved, net margins dropped.
HealthSouth reported revenue of $538.6 million. The 12 analysts polled by S&P Capital IQ anticipated revenue of $525.8 million on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $506.0 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 $0.37. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.39 per share. GAAP EPS of $0.39 for Q1 were 51% lower than the prior-year quarter's $0.79 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 46.0%, 70 basis points worse than the prior-year quarter. Operating margin was 20.0%, 50 basis points better than the prior-year quarter. Net margin was 8.3%, 750 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $530.1 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $2.12 billion. The average EPS estimate is $1.47.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HealthSouth is outperform, with an average price target of $24.85.
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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. He is the 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 don't 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.