The 10-second takeaway
For the quarter ended June 30 (Q2), Kindred Healthcare missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded.
Gross margins dropped, operating margins dropped, net margins improved.
Kindred Healthcare notched revenue of $1.54 billion. The nine analysts polled by S&P Capital IQ expected revenue of $1.58 billion on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $1.29 billion.
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 $0.41. The nine earnings estimates compiled by S&P Capital IQ averaged $0.37 per share. GAAP EPS were $0.29 for Q2 versus -$0.13 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 33.9%, 60 basis points worse than the prior-year quarter. Operating margin was 3.3%, 20 basis points worse than the prior-year quarter. Net margin was 1.0%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.55 billion. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $6.24 billion. The average EPS estimate is $1.49.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 132 members out of 143 rating the stock outperform, and 11 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Kindred Healthcare 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 Kindred Healthcare is hold, with an average price target of $11.64.
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