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Wednesday, November 3, 2010

Skilled Healthcare Group, Inc. (SKH), latest earning report -- Stats & Financial ratios

ER stats for SKH. It seems the momentum is still going today. Be careful. I'm not recommending stock here because I believe people should make their own decisions based on their own analysis. In addition, to invest in low price stocks you have to be ready to take big loss and you have to watch the fundamentals very closely.
Analysts' view (EPS & Revenue beat, and better management outlook guidance)
 ratio analysis: note here the data is GAAP standard.


Notice here both the analyst estimate and actual EPS results are in Non-GAAP term. What does that mean? GAAP is US standard for financial statement reporting so US firms (To be exact, firms listed in US) have to report GAAP data. Some firms want to show something else not reflected/disguised in GAAP so they will report Non-GAAP data. SKH is doing this to demonstrate their core operating results without the legal charges (non-recurring) etc. If you believe the company’s fundamentals are not influenced by the non-recurring items you should be fine to judge the performance by NON-GAAP numbers. Similarly in the report, EBIDA and such (management’s performance metrics here) are mentioned and explained. You might want to read that. It's a good measure for free cash flow of a company. All else being equal, good free cash flow is definitely a good thing.  



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