Gentiva Health Services Beats Estimates but Has a Big Earnings Drop

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Gentiva Health Services (NAS: GTIV) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Gentiva Health Services beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Gentiva Health Services tallied revenue of $449.2 million. The eight analysts polled by S&P Capital IQ expected to see a top line of $442.3 million. Sales were 3.4% lower than the prior-year quarter's $465.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.37. The nine earnings estimates compiled by S&P Capital IQ forecast $0.30 per share on the same basis. GAAP EPS of $0.15 for Q4 were 71% lower than the prior-year quarter's $0.51 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 46.4%, 350 basis points worse than the prior-year quarter. Operating margin was 5.6%, 670 basis points worse than the prior-year quarter. Net margin was 1.0%, 240 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $433.9 million. On the bottom line, the average EPS estimate is $0.24.

Next year's average estimate for revenue is $1.75 billion. The average EPS estimate is $1.06.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 309 members out of 324 rating the stock outperform, and 15 members rating it underperform. Among 114 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 give Gentiva Health Services a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gentiva Health Services is hold, with an average price target of $4.70.

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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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