Skilled Healthcare Group Beats on EPS But GAAP Results Lag
Skilled Healthcare Group (NYS: SKH) reported earnings on Feb. 13. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Skilled Healthcare Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Skilled Healthcare Group chalked up revenue of $217.2 million. The 11 analysts polled by S&P Capital IQ expected revenue of $218.1 million on the same basis. GAAP reported sales were 2.9% lower than the prior-year quarter's $220.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.32. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.31 per share on the same basis. GAAP EPS of $0.19 for Q3 were 34% lower than the prior-year quarter's $0.29 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 15.2%, 340 basis points worse than the prior-year quarter. Operating margin was 9.4%, 290 basis points worse than the prior-year quarter. Net margin was 3.2%, 170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $212.5 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $867.8 million. The average EPS estimate is $1.10.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 140 members out of 149 rating the stock outperform, and nine members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Skilled Healthcare Group a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Skilled Healthcare Group is hold, with an average price target of $6.49.
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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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