Lincare Holdings Beats on Revenue, Matches Expectations on EPS

Seth Jayson, The Motley Fool
Updated

Lincare Holdings (NAS: LNCR) reported earnings Feb. 6. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded.

Margins contracted across the board.

Revenue details
Lincare Holdings booked revenue of $474.8 million. The eight analysts polled by S&P Capital IQ hoped for revenue of $455.1 million. Sales were 17% higher than the prior-year quarter's $418.7 million.

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

EPS details
Non-GAAP EPS came in at $0.48. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.48 per share on the same basis. GAAP EPS of $0.51 for Q3 were 6.3% higher than the prior-year quarter's $0.48 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 44.4%, 1,950 basis points worse than the prior-year quarter. Operating margin was 16.9%, 310 basis points worse than the prior-year quarter. Net margin was 9.1%, 180 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $483.8 million. On the bottom line, the average EPS estimate is $0.51.

Next year's average estimate for revenue is $1.84 billion. The average EPS estimate is $1.93.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 127 members out of 152 rating the stock outperform, and 25 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give Lincare Holdings a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lincare Holdings is hold, with an average price target of $27.35.

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At the time thisarticle 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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