HealthSouth Increases Sales but Misses Estimates on Earnings
HealthSouth (NYS: HLS) reported earnings on April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), HealthSouth beat expectations on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.
Gross margins shrank, operating margins improved, net margins dropped.
HealthSouth reported revenue of $538.6 million. The 12 analysts polled by S&P Capital IQ anticipated revenue of $525.8 million on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $506.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.37. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.39 per share. GAAP EPS of $0.39 for Q1 were 51% lower than the prior-year quarter's $0.79 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.0%, 70 basis points worse than the prior-year quarter. Operating margin was 20.0%, 50 basis points better than the prior-year quarter. Net margin was 8.3%, 750 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $530.1 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $2.12 billion. The average EPS estimate is $1.47.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HealthSouth is outperform, with an average price target of $24.85.
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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. He is the 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 don't 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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