Sunrise Senior Living Meets on the Top Line but Misses Where It Counts
Sunrise Senior Living (NYS: SRZ) reported earnings on May 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Sunrise Senior Living met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, both revenue and GAAP earnings per share grew.
Gross margin contracted, while both operating margin and net margin grew.
Sunrise Senior Living reported revenue of $335.7 million. The two analysts polled by S&P Capital IQ hoped for revenue of $335 million on the same basis. GAAP-reported sales were much higher than the prior-year quarter's $134.9 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 -$0.03. The two earnings estimates compiled by S&P Capital IQ anticipated $0.07 per share. GAAP EPS were $0.03 for Q1 against -$0.32 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 12.8%, 2,630 basis points worse than the prior-year quarter. Operating margin was 0.7%, 640 basis points better than the prior-year quarter. Net margin was 0.6%, 1,370 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $337.1 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $1.35 billion. The average EPS estimate is $0.31.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 483 members rating the stock outperform and 52 members rating it underperform. Among 137 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 124 give Sunrise Senior Living a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sunrise Senior Living is buy, with an average price target of $10.
Over the decades, small-cap stocks like Sunrise Senior Living have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Sunrise Senior Living to My Watchlist.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.