The 10-second takeaway
For the quarter ended Dec. 31 (Q4), HEALTHSOUTH beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew.
Margins shrank across the board.
HEALTHSOUTH recorded revenue of $552.9 million. The 12 analysts polled by S&P Capital IQ hoped for a top line of $545.5 million on the same basis. GAAP reported sales were 5.3% higher than the prior-year quarter's $518.1 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 $0.43. The eight earnings estimates compiled by S&P Capital IQ forecast $0.32 per share. GAAP EPS of $0.44 for Q4 were 10.0% higher than the prior-year quarter's $0.40 per share. (The prior-year quarter included -$0.05 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.8%, 60 basis points worse than the prior-year quarter. Operating margin was 19.2%, 110 basis points worse than the prior-year quarter. Net margin was 8.6%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $556.6 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $2.23 billion. The average EPS estimate is $1.64.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HEALTHSOUTH is outperform, with an average price target of $26.73.
Is HEALTHSOUTH the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.
- Add HEALTHSOUTH to My Watchlist.
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 position in any of the stocks mentioned. 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.