Lincare Holdings Earnings Preview

Motley Fool Staff
Updated

Lincare Holdings (NAS: LNCR) met its estimates last quarter, but investors hope that it will beat them this quarter. The company will unveil its latest earnings on Monday, April 16. Lincare Holdings, together with its subsidiaries, is a provider of oxygen and other respiratory therapy services to patients in the home.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Lincare Holdings with five of eight analysts rating it hold. Analysts like Lincare Holdings better than competitor Owens & Minor overall. Zero out of eight analysts rate Owens & Minor a buy compared to three of eight for Lincare Holdings. Analysts' rating of Lincare Holdings has stayed constant from three months prior.

  • Revenue Forecasts: On average, analysts predict $500.9 million in revenue this quarter. That would represent a rise of 16.1% from the year-ago quarter.

  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.53 per share. Estimates range from $0.50 to $0.53.

What our community says:
CAPS All-Stars are in strong support of the stock, with 89.8% granting it an "outperform" rating. Most of the community is in line with the All-Stars, with 84.5% assigning it a rating of "outperform." Despite the majority sentiment in favor of Lincare Holdings, the stock has a middling CAPS rating of three out of five stars.


Management:
Lincare Holdings' income has fallen year-over-year by an average of 2.2% over the past five quarters. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins serve as an illustration of how efficiently a company captures portions of sales dollars. Lincare Holdings has seen decreasing operating margins year-over-year for the last four quarters. Operating margins reflect the total sales revenue that the company retains after costs. See how Lincare Holdings has been doing for the last four quarters:

Quarter

Q4

Q3

Q2

Q1

Gross Margin

67.2%

68.1%

68.3%

71.2%

Operating Margin

16.9%

16.9%

17.8%

19.6%

Net Margin

9.1%

9.2%

9.5%

10.7%

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