MedCath Earnings Preview

Updated

Investors are braced for a bumpy ride ahead of MedCath's (NAS: MDTH) earnings announcement as the company has wavered between beating and falling short of analyst predictions during the past fiscal year. The company will unveil its latest earnings on Tuesday, August 9. MedCath is a health-care provider and is focused primarily on high acuity services, including the diagnosis and treatment of cardiovascular disease.

What analysts say:

What our community says:
CAPS All-Stars are solidly behind the stock, with 95.3% awarding it an "outperform" rating. The community at large backs the All-Stars, with 90.3% granting it a rating of "outperform." Fools are gung-ho about MedCath, though the message boards have been quiet lately with only 38 posts in the past 30 days. Despite the majority sentiment in favor of MedCath, the stock has a middling CAPS rating of three out of five stars.

Management:
Revenue has fallen for the past three quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

76.1%

41.9%

57.3%

39.1%

Operating Margin

(17.6%)

(1.8%)

(46.4%)

(17%)

Net Margin

(13.9%)

41.7%

(42%)

(9.7%)

One final thing: If you want to keep tabs on MedCath movements -- and for more analysis on the company -- make sure you add it to your Watchlist.

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At the time thisarticle was published

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