IKang Healthcare Profit Misses Estimate; Stock Down 12% - Quick Facts

(RTTNews) - iKang Healthcare Group Inc (KANG) Monday reported first-quarter net earnings to stockholders of $1.65 million. This compares with a profit of $1.3 million last year, when it recorded $3.7 million of deemed dividend to preferred shareholders.

On a per American depositary share, or ADS basis, earnings for the quarter were $0.03, compared with $0.09 last year.

Excluding items, adjusted earnings for the quarter were $8.9 million or $0.13 per ADS. Analysts polled by Thomson Reuters estimated earnings of $0.17 per ADS for the quarter. Analysts' estimates typically exclude special items.

iKang, which went public in April, said its revenues for the quarter jumped 43.3% to $60.2 million from $42 million in the prior year.

Analysts polled by Thomson Reuters estimated revenues of $61.4 million for the quarter.

Results were hurt by gross margin that slid to 48.3% from 53.4% a year ago, as newly operated centers were still at their ramping-up stage.

Operating expenses increased 85% from a year ago to $23.4 million, mainly on stock-based compensation expenses.

Looking ahead to the fiscal year ended March 2015, the company continues to expect revenues of $283 million to $290 million, while analysts expect $323 million.

iKang is the largest provider of private preventive healthcare services in China in terms of revenue.

iKang stock closed Monday at $22.65, up $2.08 or 10.11%, on a volume of 756k shares on the Nasdaq. In after hours, the stock dropped $2.65 or 11.70% at $20.00.