Ensign Group Increases Sales but Misses Estimates on Earnings

Ensign Group (Nasdaq: ENSG  ) reported earnings on Feb. 13. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ensign Group whiffed on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue didn't change and GAAP earnings per share dropped significantly.

Gross margins grew, operating margins dropped, net margins dropped.

Revenue details
Ensign Group booked revenue of $192.7 million. The six analysts polled by S&P Capital IQ expected to see revenue of $214.2 million on the same basis. GAAP reported sales were 9.6% higher than the prior-year quarter's $192.7 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 $0.61. The six earnings estimates compiled by S&P Capital IQ anticipated $0.64 per share. GAAP EPS of $0.08 for Q4 were 83% lower than the prior-year quarter's $0.48 per share.

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 23.4%, 630 basis points better than the prior-year quarter. Operating margin was 2.8%, 700 basis points worse than the prior-year quarter. Net margin was 0.9%, 450 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $217.3 million. On the bottom line, the average EPS estimate is $0.66.

Next year's average estimate for revenue is $893.1 million. The average EPS estimate is $2.68.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 260 members out of 269 rating the stock outperform, and nine members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 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 $37.50.

Is Ensign Group the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.

• Add Ensign Group to My Watchlist.