The 10-second takeaway
For the quarter ended March 31 (Q1), LHC Group met expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue contracted slightly and GAAP earnings per share was unchanged.
Gross margins contracted, operating margins were steady, net margins grew.
LHC Group chalked up revenue of $158.8 million. The 10 analysts polled by S&P Capital IQ predicted a top line of $158.9 million on the same basis. GAAP reported sales were 1.9% lower than the prior-year quarter's $161.8 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 $0.44. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.36 per share. GAAP EPS of $0.42 were the same as 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 43.4%, 160 basis points worse than the prior-year quarter. Operating margin was 9.6%, about the same as the prior-year quarter. Net margin was 4.9%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $161.2 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $647.2 million. The average EPS estimate is $1.58.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 239 members out of 247 rating the stock outperform, and eight members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give LHC Group 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 LHC Group is outperform, with an average price target of $18.83.
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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.