Gentiva Health Services Misses on the Top and Bottom Lines

Gentiva Health Services (Nasdaq: GTIV  ) reported earnings on Feb. 7. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share increased significantly.

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

Revenue details
Gentiva Health Services tallied revenue of $425.0 million. The eight analysts polled by S&P Capital IQ looked for a top line of $433.7 million on the same basis. GAAP reported sales were 5.4% lower than the prior-year quarter's $449.2 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 $0.31. The seven earnings estimates compiled by S&P Capital IQ predicted $0.34 per share. GAAP EPS of $0.28 for Q4 were 100% higher than the prior-year quarter's $0.14 per share. (The prior-year quarter included $0.04 per share in earnings from discontinued operations.)

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 46.1%, 30 basis points worse than the prior-year quarter. Operating margin was 9.1%, 30 basis points better than the prior-year quarter. Net margin was 2.0%, 100 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $438.2 million. On the bottom line, the average EPS estimate is $0.29.

Next year's average estimate for revenue is $1.74 billion. The average EPS estimate is $1.28.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 270 members out of 285 rating the stock outperform, and 15 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give Gentiva Health Services a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gentiva Health Services is hold, with an average price target of $13.20.

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