Emeritus Misses Where It Counts
Emeritus (NYS: ESC) reported earnings on Mar. 6. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Emeritus met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP loss per share improved.
Margins contracted across the board.
Emeritus chalked up revenue of $324.1 million. The four analysts polled by S&P Capital IQ looked for sales of $326.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $283.8 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 -$0.56. The five earnings estimates compiled by S&P Capital IQ anticipated -$0.33 per share on the same basis. GAAP EPS were -$0.63 for Q4 versus -$0.36 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.3%, 240 basis points worse than the prior-year quarter. Operating margin was 5.5%, 150 basis points worse than the prior-year quarter. Net margin was -8.6%, 330 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $328.1 million. On the bottom line, the average EPS estimate is -$0.36.
Next year's average estimate for revenue is $1.33 billion. The average EPS estimate is -$1.21.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 40 members out of 62 rating the stock outperform, and 22 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Emeritus a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Emeritus is buy, with an average price target of $22.50.
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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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