Five Star Quality Care Earnings: Here’s Why the Stock is Falling Now

Five Star Quality Care, Inc. (AMEX:FVE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.38%.

Five Star Quality Care, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 0% to $0.07 in the quarter versus EPS of $0.02 in the year-earlier quarter.

Revenue: Rose 7.91% to $359.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Five Star Quality Care, Inc. reported adjusted EPS income of $0.07 per share. By that measure, the company beat the mean analyst estimate of $0. It beat the average revenue estimate of $343.77 million.

Quoting Management: Bruce Mackey, President & CEO, made the following statement regarding the fourth quarter results of operations and recent activities:
“Although our occupancy rate for our owned and leased senior living communities declined year over year, this was primarily because of declines in occupancy from high acuity residents at our continuing care retirement communities, or CCRC’s, and SNFs. Occupancy rates at our owned and leased independent and assisted living communities, which combined represent the largest number of units we operate, improved on a year over year basis. Furthermore, our average monthly rate increased in all property types on a year over year basis.”

Key Stats (on next page)…

Revenue increased 8.03% from $332.42 million in the previous quarter. EPS decreased 0% from $0.07 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 profit of $0.05 to a loss $0. For the current year, the average estimate has moved down from a profit of $0.2 to a loss of $0 over the last ninety days.

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