Metropolitan Health Networks Increases Sales but Misses Revenue Estimate

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Metropolitan Health Networks (NYS: MDF) reported earnings on Mar. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Metropolitan Health Networks missed slightly on revenues and whiffed on earnings per share.

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

Gross margins improved, operating margins increased, net margins shrank.

Revenue details
Metropolitan Health Networks reported revenue of $175.1 million. The two analysts polled by S&P Capital IQ expected to see net sales of $178.1 million on the same basis. GAAP reported sales were 92% higher than the prior-year quarter's $91.4 million.

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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 $0.13. The two earnings estimates compiled by S&P Capital IQ predicted $0.19 per share on the same basis. GAAP EPS of $0.06 for Q4 were 57% lower than the prior-year quarter's $0.14 per share.

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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 24.2%, 590 basis points better than the prior-year quarter. Operating margin was 14.0%, 310 basis points better than the prior-year quarter. Net margin was 1.6%, 500 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $200.4 million. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $781.5 million. The average EPS estimate is $0.86.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 220 members out of 232 rating the stock outperform, and 12 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Metropolitan Health Networks a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Metropolitan Health Networks is buy, with an average price target of $8.71.

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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. 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

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