Skilled Healthcare Group Meets on Revenues, Misses on EPS

Just the facts, Fool.

Seth Jayson
Seth Jayson
Feb 12, 2013 at 12:00AM
Other

Skilled Healthcare Group (NYSE: SKH) reported earnings on Feb. 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Skilled Healthcare Group met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share shrank significantly.

Margins contracted across the board.

Revenue details
Skilled Healthcare Group notched revenue of $219.2 million. The eight analysts polled by S&P Capital IQ expected revenue of $219.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.16. The nine earnings estimates compiled by S&P Capital IQ averaged $0.19 per share. GAAP EPS of $0.15 for Q4 were 21% lower than the prior-year quarter's $0.19 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 13.3%, 190 basis points worse than the prior-year quarter. Operating margin was 7.8%, 160 basis points worse than the prior-year quarter. Net margin was 2.6%, 60 basis points worse than the prior-year quarter.


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Looking ahead
Next quarter's average estimate for revenue is $223.6 million.

Next year's average estimate for revenue is $896.7 million. The average EPS estimate is $0.80.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 129 members out of 138 rating the stock outperform, and nine members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Skilled Healthcare Group a green thumbs-up, and two give it a red thumbs-down.

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