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.

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Emeritus Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.88 in the quarter versus EPS of $-0.43 in the year-earlier quarter.

Revenue: Rose 46.25% to $472.36 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Emeritus Corp. reported adjusted EPS loss of $0.88 per share. By that measure, the company missed the mean analyst estimate of $-0.54. It missed the average revenue estimate of $474.74 million.

Quoting Management: Granger Cobb, President and Chief Executive Officer, commented, “We achieved solid growth in our total portfolio of communities in the first quarter, with improvements in occupancy and rate. We are very optimistic about the Emeritus growth profile as we expect to benefit from ongoing operating improvements and the embedded growth potential in our 482 communities, including the recently consolidated “HCP-133” communities. We are also pleased with the early integration of Nurse on Call home healthcare services into our Florida communities and the opportunity that it will provide in the coming years.”

Key Stats (on next page)…

Revenue increased 7.95% from $437.56 million in the previous quarter. EPS decreased to $-0.88 in the quarter versus EPS of $-0.61 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 $0.12 to a loss $0.43. For the current year, the average estimate has moved down from a loss of $0.48 to a loss of $1.68 over the last ninety days.

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