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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