Universal American Goes Red
Universal American (NYS: UAM) filed its 10-K on March 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Universal American missed estimates on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share shrank to a loss.
Gross margin increased, operating margin improved, and net margin dropped.
Universal American reported revenue of $528.9 million. The five analysts polled by S&P Capital IQ looked for revenue of $564.7 million on the same basis. GAAP reported sales were 40% lower than the prior-year quarter's $875.4 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 $0.13. The seven earnings estimates compiled by S&P Capital IQ predicted $0.02 per share on the same basis. GAAP EPS were -$0.25 for Q4 compared to $1.32 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.3%, 670 basis points better than the prior-year quarter. Operating margin was 3.2%, 480 basis points better than the prior-year quarter. Net margin was -3.8%, 1,570 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $533.0 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $2.27 billion. The average EPS estimate is $0.57.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 63 members out of 69 rating the stock outperform, and six members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Universal American 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 Universal American is outperform, with an average price target of $13.17.
Over the decades, small-cap stocks like Universal American have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Universal American to My Watchlist.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.