The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kindred Healthcare missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share grew significantly. GAAP loss per share increased.
Gross margins increased, operating margins increased, net margins dropped.
Kindred Healthcare booked revenue of $1.55 billion. The eight analysts polled by S&P Capital IQ looked for revenue of $1.58 billion 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 came in at $0.46. The eight earnings estimates compiled by S&P Capital IQ forecast $0.43 per share. Non-GAAP EPS of $0.46 for Q4 were 70% higher than the prior-year quarter's $0.27 per share. (The prior-year quarter included $0.02 per share in earnings from discontinued operations.) GAAP EPS were -$1.58 for Q4 versus -$1.39 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 34.0%, 90 basis points better than the prior-year quarter. Operating margin was 3.9%, 100 basis points better than the prior-year quarter. Net margin was -5.3%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.50 billion. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $5.90 billion. The average EPS estimate is $1.23.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 134 members out of 144 rating the stock outperform, and 10 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 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 $11.88.
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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 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.