The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Ensign Group missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Gross margins dropped, operating margins dropped, net margins grew.
Ensign Group booked revenue of $207.2 million. The six analysts polled by S&P Capital IQ wanted to see sales of $212.1 million on the same basis. GAAP reported sales were 5.5% higher than the prior-year quarter's $196.3 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 $0.62. The five earnings estimates compiled by S&P Capital IQ forecast $0.61 per share. GAAP EPS of $0.60 for Q3 were 11% higher than the prior-year quarter's $0.54 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 18.8%, 20 basis points worse than the prior-year quarter. Operating margin was 11.4%, 80 basis points worse than the prior-year quarter. Net margin was 6.4%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $216.4 million. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $834.3 million. The average EPS estimate is $2.50.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 263 members out of 271 rating the stock outperform, and eight members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Ensign 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 Ensign Group is outperform, with an average price target of $37.50.
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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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend The Ensign Group. 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.