HMS Holdings' Earnings Beat Last Year's by 29%
HMS Holdings (NAS: HMSY) filed its 10-K on Feb. 29. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), HMS Holdings met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share shrank.
Gross margin expanded, operating margin expanded, and net margin dropped.
HMS Holdings chalked up revenue of $99.7 million. The seven analysts polled by S&P Capital IQ hoped for sales of $99.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $87.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.18. The six earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share on the same basis. GAAP EPS of $0.13 for Q4 were 7.1% lower than the prior-year quarter's $0.14 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.3%, 120 basis points better than the prior-year quarter. Operating margin was 25.0%, 140 basis points better than the prior-year quarter. Net margin was 11.2%, 300 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $114.5 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $520.4 million. The average EPS estimate is $0.78.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 279 members out of 296 rating the stock outperform, and 17 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give HMS Holdings a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HMS Holdings is outperform, with an average price target of $31.29.
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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.