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Ensign Group Goes Red

Thursday - 5/2/2013, 2:00am  ET

Ensign Group reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Ensign Group missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew. GAAP earnings per share shrank to a loss.

Margins contracted across the board.

Revenue details
Ensign Group reported revenue of $218.2 million. The seven analysts polled by S&P Capital IQ predicted revenue of $224.6 million on the same basis. GAAP reported sales were 7.9% higher than the prior-year quarter's $202.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.65. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.68 per share. Non-GAAP EPS of $0.65 for Q1 were 6.6% higher than the prior-year quarter's $0.61 per share. GAAP EPS were -$0.56 for Q1 against $0.59 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 17.8%, 100 basis points worse than the prior-year quarter. Operating margin was 10.2%, 140 basis points worse than the prior-year quarter. Net margin was -5.6%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $227.2 million. On the bottom line, the average EPS estimate is $0.69.

Next year's average estimate for revenue is $916.5 million. The average EPS estimate is $2.76.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 258 members out of 267 rating the stock outperform, and nine members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Ensign Group a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ensign Group is outperform, with an average price target of $38.60.

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This article was originally published as Ensign Group Goes Redon Fool.com

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