Lincare Holdings Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Lincare Holdings (NAS: LNCR) reported earnings on April 16. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Lincare Holdings met expectations on revenues and beat slightly on earnings per share.

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


Margins shrank across the board.

Revenue details
Lincare Holdings booked revenue of $500.9 million. The eight analysts polled by S&P Capital IQ expected revenue of $500.8 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $431.6 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
EPS came in at $0.54. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.53 per share. GAAP EPS of $0.54 for Q1 were 10% higher than the prior-year quarter's $0.49 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 44.4%, 680 basis points worse than the prior-year quarter. Operating margin was 17.2%, 240 basis points worse than the prior-year quarter. Net margin was 9.3%, 140 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $508.4 million. On the bottom line, the average EPS estimate is $0.55.

Next year's average estimate for revenue is $2.05 billion. The average EPS estimate is $2.27.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 125 members out of 149 rating the stock outperform, and 25 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Lincare Holdings 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 Lincare Holdings is hold, with an average price target of $28.27.

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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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