The Gory Details on Allscripts Healthcare Solutions' Double Fumble
Allscripts Healthcare Solutions (NAS: MDRX) reported earnings on April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Allscripts Healthcare Solutions missed estimates on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Allscripts Healthcare Solutions notched revenue of $364.7 million. The 18 analysts polled by S&P Capital IQ looked for sales of $387.6 million on the same basis. GAAP reported sales were 8.8% higher than the prior-year quarter's $335.3 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 $0.12. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.24 per share. GAAP EPS of $0.03 for Q1 were 50% lower than the prior-year quarter's $0.06 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 42.7%, 500 basis points worse than the prior-year quarter. Operating margin was 3.6%, 640 basis points worse than the prior-year quarter. Net margin was 1.6%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $403.2 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $1.64 billion. The average EPS estimate is $1.09.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 461 members out of 491 rating the stock outperform, and 30 members rating it underperform. Among 110 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 give Allscripts Healthcare Solutions a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Allscripts Healthcare Solutions is outperform, with an average price target of $23.58.
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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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