Providence Service Earnings: Here’s Why the Stock is Down Now

Providence Service Corp. (NASDAQ:PRSC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.23%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Providence Service Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 100% to $0.46 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Rose 8.21% to $281.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Providence Service Corp. reported adjusted EPS income of $0.46 per share. By that measure, the company beat the mean analyst estimate of $0.32. It missed the average revenue estimate of $282.46 million.

Quoting Management: “During the fourth quarter, we saw our NET margins improve sequentially as we worked to stabilize or exit some of our underperforming contracts,” said Warren Rustand, Interim Chief Executive Officer. “The impact of these margin gains was offset by the one-time charges associated with the management transition that occurred in the quarter.”

Key Stats (on next page)…

Revenue decreased 1.75% from $286.52 million in the previous quarter. EPS increased 109.09% from $0.22 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 $0.34 to a profit $0.33. For the current year, the average estimate has moved up from a profit of $1.19 to a profit of $1.22 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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