Emeritus Earnings: Everything You Must Know Now

Emeritus Corp. (NYSE:ESC) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Emeritus Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.66 in the quarter versus EPS of $-0.49 in the year-earlier quarter.

Revenue: Rose 26.97% to $475.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Emeritus Corp. reported adjusted EPS loss of $0.66 per share. By that measure, the company missed the mean analyst estimate of $-0.48. It missed the average revenue estimate of $477.38 million.

Quoting Management: Granger Cobb, President and Chief Executive Officer, commented, “We were very pleased to see occupancy rebound with a 20-basis point sequential lift in our same store portfolio after the effects of a rough flu season in the first quarter. The continued integration of home healthcare services into our communities through our Nurse On Call subsidiary is making solid progress, and we look forward to on-boarding 38 high quality communities and benefitting from their operating teams’ experience later in the quarter. Finally, as we celebrate our 20th anniversary, we would like to thank our more than 30,000 dedicated and compassionate employees who care for our 42,000 residents every day as though they were family.”

Key Stats (on next page)…

Revenue increased 0.75% from $472.37 million in the previous quarter. EPS decreased to $-0.66 in the quarter versus EPS of $-0.88 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.4 to a loss $0.41. For the current year, the average estimate has moved up from a loss of $1.98 to a loss of $1.97 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)