Computer Programs & Systems Misses Where It Counts

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Computer Programs & Systems (NAS: CPSI) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Computer Programs & Systems beat slightly on revenues and missed estimates on earnings per share.

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


Gross margins improved, operating margins dropped, and net margins contracted.

Revenue details
Computer Programs & Systems logged revenue of $44.5 million. The 11 analysts polled by S&P Capital IQ foresaw a top line of $43.8 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $40.4 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
EPS came in at $0.51. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.56 per share. GAAP EPS of $0.51 for Q1 were 4.1% higher than the prior-year quarter's $0.49 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 43.3%, 90 basis points better than the prior-year quarter. Operating margin was 20.2%, 80 basis points worse than the prior-year quarter. Net margin was 12.7%, 60 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $49.7 million. On the bottom line, the average EPS estimate is $0.70.

Next year's average estimate for revenue is $193.5 million. The average EPS estimate is $2.70.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 123 members out of 131 rating the stock outperform, and eight members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Computer Programs & Systems a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Computer Programs & Systems is outperform, with an average price target of $69.05.

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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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