Merge Healthcare Misses on the Top and Bottom Lines
Merge Healthcare (NAS: MRGE) reported earnings on May 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Merge Healthcare missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share contracted.
Gross margins contracted, operating margins dropped, net margins were steady.
Merge Healthcare reported revenue of $61.0 million. The five analysts polled by S&P Capital IQ wanted to see a top line of $64.7 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $52.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.03. The five earnings estimates compiled by S&P Capital IQ anticipated $0.04 per share. GAAP EPS were -$0.02 for Q1 against -$0.04 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 62.1%, 70 basis points worse than the prior-year quarter. Operating margin was 9.9%, 130 basis points worse than the prior-year quarter. Net margin was -3.0%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $68.0 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $281.1 million. The average EPS estimate is $0.29.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 104 members out of 123 rating the stock outperform, and 19 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Merge Healthcare a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Merge Healthcare is outperform, with an average price target of $8.38.
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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.
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