Hanger Meets on Revenues, Misses on EPS

Seth Jayson, The Motley Fool
Updated

Hanger (NYS: HGR) reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Hanger met expectations on revenues and missed estimates on earnings per share.

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


Margins contracted across the board.

Revenue details
 Hanger reported revenue of $273.7 million. The six analysts polled by S&P Capital IQ wanted to see a top line of $271.4 million on the same basis. GAAP reported sales were 8.7% higher than the prior-year quarter's $251.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
 EPS came in at $0.52. The six earnings estimates compiled by S&P Capital IQ predicted $0.56 per share. Non-GAAP EPS of $0.52 for Q2 were 4.0% higher than the prior-year quarter's $0.50 per share. GAAP EPS of $0.40 for Q2 were 20% lower than the prior-year quarter's $0.50 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Margin details
 For the quarter, gross margin was 36.9%, 100 basis points worse than the prior-year quarter. Operating margin was 13.5%, 70 basis points worse than the prior-year quarter. Net margin was 5.1%, 180 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $270.1 million. On the bottom line, the average EPS estimate is $0.58.

Next year's average estimate for revenue is $1.07 billion. The average EPS estimate is $2.09.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 113 members out of 120 rating the stock outperform, and seven members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Hanger a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hanger is buy, with an average price target of $35.80.

Is Hanger the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.

The article Hanger Meets on Revenues, Misses on EPS 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. The Motley Fool has no position in any of the stocks mentioned. 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 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement