Hanger Orthopedic Group Inc. (NYSE:HGR) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down up 1.21%.
Hanger Orthopedic Group Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 4% to $0.52 in the quarter versus EPS of $0.50 in the year-earlier quarter.
Revenue: Rose 8.72% to $273.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Hanger Orthopedic Group Inc. reported adjusted EPS income of $0.52 per share. By that measure, the company missed the mean analyst estimate of $0.56. It beat the average revenue estimate of $271.74 million.
Quoting Management: “We are pleased with our overall sales performance in the quarter despite a difficult macro environment, but are not satisfied with our second quarter earnings,” commented Vinit K. Asar, President and Chief Executive Officer of Hanger. “Same center sales in our Patient Care segment continued to be strong, delivering 3.9% growth in the quarter. However, higher costs in the quarter related to increased Recovery Audit Contractor (RAC) audits, sequestration and employee benefits had a negative impact on operating margin of approximately 100 basis points compared to Q2 last year. During the second half of 2013 we will remain sharply focused on the key value drivers of our business – same center sales and O&P acquisitions – while we weather regulatory pressures and cost increases with an increasing focus on reducing material costs and driving other efficiency initiatives.”
Key Stats (on next page)…