America Service Group, Inc. (ASGR) just reported solid fourth-quarter and full-year results and looks well positioned for a year of impressive earnings growth.

Company Description

America Service Group, Inc., through its subsidiaries, provides managed healthcare services to correctional facilities in the United States. The company was founded in 1978 and has a market cap of $108 million.

Fourth-Quarter Results

America Services Group reported strong fourth-quarter and full-year results on March 3 that were ahead of analyst estimates and a big improvement from last year.

Revenue from continuing contracts increased 4.9% to $120.8 million. Income came in at $1.2 million, up from a loss of $685,000 last year. Earnings totaled 15 cents per share, one penny ahead of the consensus estimate.

Full-Year Results

Full-year revenue from continuing contracts were up 7.3% from last year to $497.7 million, while income from operations came in at $8 million, up from a loss of $2.5 million last year.

The company also noted that it is totally debt free, providing a margin of operational safety in a credit restricted environment.

Estimates Tick Higher

After the solid quarter, the consensus estimate ticked higher, climbing 19 cents to 83 cents per share, a 37% earnings growth projection from the previous year.

Valuations

Based upon the current-year estimate, this stock has a forward P/E multiple of 13.25X , a fairly reasonable valuation for a company carrying solid growth projections.

The Chart

Shares of ASGR are currently pressuring a 6-month level of resistance at the $11.50 mark after rallying from just above $7 in early December. The 52-week high is just above $13, take a look below.

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