CorVel Misses on the Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

CorVel (NAS: CRVL) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), CorVel missed estimates on revenues and missed expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
CorVel logged revenue of $101.4 million. The one analyst polled by S&P Capital IQ anticipated sales of $106.9 million. Sales were 6.4% higher than the prior-year quarter's $95.3 million.

anImage
anImage

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

EPS details
Non-GAAP EPS came in at $0.47. The one earnings estimate compiled by S&P Capital IQ predicted $0.75 per share on the same basis. GAAP EPS of $0.47 for Q3 were 16% lower than the prior-year quarter's $0.56 per share.

anImage
anImage

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 20.9%, 410 basis points worse than the prior-year quarter. Operating margin was 8.8%, 320 basis points worse than the prior-year quarter. Net margin was 5.3%, 180 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $109.4 million. On the bottom line, the average EPS estimate is $0.79.

Next year's average estimate for revenue is $423.1 million. The average EPS estimate is $2.91.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 51 members out of 61 rating the stock outperform, and 10 members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give CorVel a green thumbs-up, and four give it a red thumbs-down.

If you're interested in health-care stocks like CorVel, you might want to expand your horizons to find maximum returns. Follow the money and meet a prime candidate for major returns in our new report, "Discover the Next Rule-Breaking Multibagger." Click here for instant access to this free report.

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.

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

Advertisement