The 10-second takeaway
For the quarter ended March 31 (Q1), Providence Service met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share increased significantly.
Margins grew across the board.
Providence Service logged revenue of $281.5 million. The three analysts polled by S&P Capital IQ expected to see revenue of $282.5 million on the same basis. GAAP reported sales were 8.2% higher than the prior-year quarter's $260.1 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 $0.49. The four earnings estimates compiled by S&P Capital IQ forecast $0.32 per share. GAAP EPS of $0.49 for Q1 were 113% higher than the prior-year quarter's $0.23 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 10.4%, 160 basis points better than the prior-year quarter. Operating margin was 4.7%, 220 basis points better than the prior-year quarter. Net margin was 2.4%, 120 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $282.9 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $1.13 billion. The average EPS estimate is $1.22.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 68 members out of 85 rating the stock outperform, and 17 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Providence Service a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Providence Service is buy, with an average price target of $22.33.
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