Charting Computer Programs & Systems' Latest Earnings Release

Updated

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

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Computer Programs & Systems missed on revenue and beat expectations on earnings per share.

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

Gross margins dropped, operating margins improved, and net margins were steady.

Revenue details
Computer Programs & Systems booked revenue of $42.2 million. The 12 analysts polled by S&P Capital IQ expected revenue of $44.1 million. Sales were 2.0% lower than the prior-year quarter's $43.1 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.59. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.58 per share. GAAP EPS of $0.59 for Q4 were 3.3% lower than the prior-year quarter's $0.61 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.2%, 110 basis points worse than the prior-year quarter. Operating margin was 24.9%, 120 basis points better than the prior-year quarter. Net margin was 15.5%, about the same as the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $45.6 million. On the bottom line, the average EPS estimate is $0.61.

Next year's average estimate for revenue is $194.0 million. The average EPS estimate is $2.68.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 111 members out of 119 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 $68.00.

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At the time thisarticle 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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