AMERIGROUP Beats Estimates but Has a Big Earnings Drop

Before you go, we thought you'd like these...
Before you go close icon

AMERIGROUP (NYS: AGP) filed its 10-K on Feb. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AMERIGROUP beat slightly on revenues and beat expectations on earnings per share.

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

Margins shrank across the board.

Revenue details
AMERIGROUP chalked up revenue of $1.65 billion. The 13 analysts polled by S&P Capital IQ anticipated revenue of $1.62 billion on the same basis. GAAP reported sales were 9.6% higher than the prior-year quarter's $1.50 billion.

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.67. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.62 per share on the same basis. GAAP EPS of $0.66 for Q4 were 58% lower than the prior-year quarter's $1.59 per share.

anImage

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 15.5%, 430 basis points worse than the prior-year quarter. Operating margin was 3.6%, 510 basis points worse than the prior-year quarter. Net margin was 2.0%, 330 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.82 billion. On the bottom line, the average EPS estimate is $0.63.

Next year's average estimate for revenue is $8.70 billion. The average EPS estimate is $3.98.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AMERIGROUP is outperform, with an average price target of $63.56.

The health-care investing landscape is littered with also-rans and a few major winners. Is AMERIGROUP prepared for the future? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company Fool co-founder David Gardner believes will deliver amazing returns during the next few years. Click here for instant access to this free report.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of AMERIGROUP. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners