Kindred Healthcare Earnings:Here’s Why the Stock is Falling Now

Kindred Healthcare Inc. (NYSE:KND) 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 1.33%.

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Kindred Healthcare Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 22.5% to $0.49 in the quarter versus EPS of $0.40 in the year-earlier quarter.

Revenue: Decreased 1.64% to $1.55 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kindred Healthcare Inc. reported adjusted EPS income of $0.49 per share. By that measure, the company beat the mean analyst estimate of $0.37. It beat the average revenue estimate of $1.52 billion.

Quoting Management: Paul J. Diaz, Chief Executive Officer of the Company, remarked, “We are pleased to report a very strong start to our fiscal 2013. While we continue to work through significant reimbursement and regulatory pressures in each of our businesses, our team generated 6% growth in consolidated operating income and 14% growth in our continuing operations diluted EPS on a core basis. This accomplishment reflects the commitment of our caregivers, and a relentless focus on cost management across the enterprise, while maintaining our culture of quality service and patient satisfaction. In addition, we are now beginning to see the benefits of the Ventas lease transition to our continuing operations, with the exit from 19 of these facilities adding $0.05 of EPS in the quarter. Another 23 Ventas facilities were transferred on April 30.”

Key Stats (on next page)…

Revenue increased 0.93% from $1.54 billion in the previous quarter. EPS increased 6.52% from $0.46 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 $0.32 to a profit $0.31. For the current year, the average estimate has moved down from a profit of $1.21 to a profit of $1.2 over the last ninety days.

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