The 10-second takeaway
For the quarter ended Sep. 30 (Q3), LHC Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins shrank, operating margins grew, net margins grew.
LHC Group chalked up revenue of $158.9 million. The eight analysts polled by S&P Capital IQ predicted a top line of $159.9 million on the same basis. GAAP reported sales were 3.6% higher than the prior-year quarter's $153.4 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 $0.38. The seven earnings estimates compiled by S&P Capital IQ predicted $0.37 per share. GAAP EPS were $0.36 for Q3 against -$2.08 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 42.6%, 20 basis points worse than the prior-year quarter. Operating margin was 7.7%, 140 basis points better than the prior-year quarter. Net margin was 4.0%, 2,870 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $162.8 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $639.5 million. The average EPS estimate is $1.55.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 228 members out of 236 rating the stock outperform, and eight members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 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 $19.07.
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