Skilled Healthcare Group, Inc. (NYSE:SKH) 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.
Skilled Healthcare Group, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 41.18% to $0.10 in the quarter versus EPS of $0.17 in the year-earlier quarter.
Revenue: Decreased 0.23% to $218.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Skilled Healthcare Group, Inc. reported adjusted EPS income of $0.10 per share. By that measure, the company missed the mean analyst estimate of $0.18. It missed the average revenue estimate of $222.52 million.
Quoting Management: “Although the Adjusted EPS of $0.10 for the quarter is disappointing, we are encouraged by the stable underlying business metrics. In particular, we are pleased with our increase in skilled mix compared to the same quarter last year, and see that metric as a positive reflection on our continued market strength in the communities served by our skilled nursing companies. Three discrete factors caused our earnings to fall below expectations: an insurance reserve adjustment; a prior year hospice cap reserve; and a Hallmark customer bankruptcy. In addition, the continued shift from Medicare days to Medicare Advantage has resulted in lower net patient service revenue due to the generally lower Medicare Advantage per diem rates compared with our Medicare rates. While many of our contracted rates include exclusions that lower the risk associated with the cost of care, the general cost structure for providing care to Medicare and Medicare Advantage patients is similar” said Boyd Hendrickson, Chairman and Chief Executive Officer of Skilled Healthcare Group.
Key Stats (on next page)…
Revenue decreased 0.14% from $219.21 million in the previous quarter. EPS decreased 37.5% from $0.16 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 $0.19 to a profit $0.17. For the current year, the average estimate has moved down from a profit of $0.80 to a profit of $0.69 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)