National Healthcare Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

National Healthcare (AMEX: NHC) reported earnings on Oct. 31. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q3), National Healthcare beat expectations on revenues and crushed expectations on earnings per share.

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


Gross margins dropped, operating margins dropped, net margins increased.

Revenue details
 National Healthcare booked revenue of $189.4 million. The one analyst polled by S&P Capital IQ predicted sales of $184.0 million on the same basis. GAAP reported sales were 1.5% lower than the prior-year quarter's $192.3 million.

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 $1.04. The one earnings estimate compiled by S&P Capital IQ predicted $0.63 per share. GAAP EPS of $1.04 for Q3 were 1.0% lower than the prior-year quarter's $1.05 per share.

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 43.6%, 80 basis points worse than the prior-year quarter. Operating margin was 8.9%, 50 basis points worse than the prior-year quarter. Net margin was 9.1%, 20 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $182.5 million. On the bottom line, the average EPS estimate is $0.63.

Next year's average estimate for revenue is $744.4 million. The average EPS estimate is $2.67.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 123 members out of 129 rating the stock outperform, and six members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give National Healthcare a green thumbs-up, and give it a red thumbs-down.

Can your retirement portfolio provide you with enough income to last? You'll need more than National Healthcare. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.

The article National Healthcare Beats Up on Analysts Yet Again originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. 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.

Advertisement