National Healthcare Crushes Earnings Estimates

National Healthcare (AMEX: NHC) reported earnings on Feb. 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), National Healthcare missed estimates on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share contracted slightly.

Gross margins expanded, operating margins contracted, net margins shrank.

Revenue details
National Healthcare reported revenue of $194.0 million. The one analyst polled by S&P Capital IQ hoped for revenue of $198.9 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $188.0 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 $0.87. The one earnings estimate compiled by S&P Capital IQ forecast $0.63 per share. GAAP EPS of $0.86 for Q4 were 2.3% lower than the prior-year quarter's $0.88 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 47.8%, 540 basis points better than the prior-year quarter. Operating margin was 8.7%, 10 basis points worse than the prior-year quarter. Net margin was 6.9%, 80 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $200.6 million. On the bottom line, the average EPS estimate is $0.64.

Next year's average estimate for revenue is $816.2 million. The average EPS estimate is $2.65.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 126 members out of 133 rating the stock outperform, and seven members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give National Healthcare a green thumbs-up, and give it a red thumbs-down.

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