The 10-second takeaway
For the quarter ended March 31 (Q1), Hanger met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Margins increased across the board.
Hanger reported revenue of $233.5 million. The five analysts polled by S&P Capital IQ expected to see a top line of $235.7 million on the same basis. GAAP reported sales were 7.1% higher than the prior-year quarter's $218.1 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 $0.28. The five earnings estimates compiled by S&P Capital IQ forecast $0.25 per share. Non-GAAP EPS of $0.28 for Q1 were 27% higher than the prior-year quarter's $0.22 per share. GAAP EPS of $0.27 for Q1 were 23% higher than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.5%, 20 basis points better than the prior-year quarter. Operating margin was 9.8%, 60 basis points better than the prior-year quarter. Net margin was 4.1%, 60 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $271.5 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $1.07 billion. The average EPS estimate is $2.04.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 113 members out of 120 rating the stock outperform, and seven members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Hanger a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hanger is buy, with an average price target of $35.20.
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