Almost Family Crushes Earnings Estimates

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Almost Family (NAS: AFAM) reported earnings on Feb. 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Almost Family met expectations on revenue and crushed expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
Almost Family reported revenue of $89.3 million. The six analysts polled by S&P Capital IQ looked for sales of $88.5 million on the same basis. GAAP reported sales were 5.7% higher than the prior-year quarter's $84.5 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.58. The six earnings estimates compiled by S&P Capital IQ predicted $0.48 per share on the same basis. GAAP EPS of $0.56 for Q4 were 24% lower than the prior-year quarter's $0.74 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 49.5%, 520 basis points worse than the prior-year quarter. Operating margin was 8.6%, 540 basis points worse than the prior-year quarter. Net margin was 5.9%, 240 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $89.4 million. On the bottom line, the average EPS estimate is $0.46.

Next year's average estimate for revenue is $363.8 million. The average EPS estimate is $1.82.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS. Among 300 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 295 give Almost Family 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 Almost Family is hold, with an average price target of $18.67.

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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. The Motley Fool owns shares of Almost Family. 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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