Kindred Healthcare Earnings: Everything You Must Know Now

Kindred Healthcare Inc. (NYSE:KND) delivered a profit 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.

Kindred Healthcare Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 21.95% to $0.32 in the quarter versus EPS of $0.41 in the year-earlier quarter.

Revenue: Decreased 8.17% to $1.41 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kindred Healthcare Inc. reported adjusted EPS income of $0.32 per share. By that measure, the company missed the mean analyst estimate of $0.33. It missed the average revenue estimate of $1.47 billion.

Quoting Management: Paul J. Diaz, Chief Executive Officer of the Company, remarked, “Despite significant reimbursement pressures brought on by federal sequestration cuts of 2% beginning April 1, Kindred reported solid second quarter core results. This accomplishment reflects the commitment of our caregivers, and a relentless focus on cost management across the enterprise, all while maintaining our culture of quality service and patient satisfaction. In addition, we are continuing to see the benefits of the Ventas nursing center transition to our continuing operations. The disposition of these 54 nursing centers lifted our earnings from continuing operations by $0.11 per diluted share in the first half of 2013.”

Key Stats (on next page)…

Revenue decreased 9.3% from $1.55 billion in the previous quarter. EPS decreased 36% from $0.50 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 $0.17 to a profit $0.16. For the current year, the average estimate has moved up from a profit of $1.22 to a profit of $1.25 over the last ninety days.

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