US Physical Therapy Beats on Both Top and Bottom Lines

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US Physical Therapy (NAS: USPH) reported earnings on Mar. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), US Physical Therapy beat expectations on revenues and beat expectations on earnings per share.

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

Gross margins dropped, operating margins contracted, net margins grew.

Revenue details
US Physical Therapy chalked up revenue of $60.7 million. The six analysts polled by S&P Capital IQ anticipated a top line of $59.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $53.3 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 $0.29. The six earnings estimates compiled by S&P Capital IQ anticipated $0.28 per share on the same basis. GAAP EPS of $0.69 for Q4 were 97% higher than the prior-year quarter's $0.35 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 26.4%, 60 basis points worse than the prior-year quarter. Operating margin was 12.7%, 220 basis points worse than the prior-year quarter. Net margin was 13.6%, 580 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $60.5 million. On the bottom line, the average EPS estimate is $0.35.

Next year's average estimate for revenue is $248.4 million. The average EPS estimate is $1.52.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 227 members out of 231 rating the stock outperform, and four members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give US Physical Therapy 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 US Physical Therapy is buy, with an average price target of $24.83.

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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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