The 10-second takeaway
For the quarter ended March 31 (Q1), Kindred Healthcare beat slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped significantly.
Margins contracted across the board.
Kindred Healthcare logged revenue of $1.55 billion. The eight analysts polled by S&P Capital IQ predicted revenue of $1.52 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 $0.51. The eight earnings estimates compiled by S&P Capital IQ predicted $0.37 per share. Non-GAAP EPS of $0.51 for Q1 were 28% higher than the prior-year quarter's $0.40 per share. GAAP EPS of $0.05 for Q1 were 86% lower than the prior-year quarter's $0.35 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%, 80 basis points worse than the prior-year quarter. Operating margin was 2.7%, 110 basis points worse than the prior-year quarter. Net margin was 0.2%, 100 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.45 billion. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $5.87 billion. The average EPS estimate is $1.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 131 members out of 141 rating the stock outperform, and 10 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Kindred Healthcare 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 Kindred Healthcare is hold, with an average price target of $12.13.
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