What to Expect From Accretive Health

Updated

Accretive Health (NYS: AH) is expected to report Q2 earnings on Wednesday. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Accretive Health's revenues will increase 27.5% and EPS will decrease 25.0%.

The average estimate for revenue is $234.1 million. On the bottom line, the average EPS estimate is $0.09.


Revenue details
Last quarter, Accretive Health booked revenue of $253.7 million. GAAP reported sales were 55% higher than the prior-year quarter's $163.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.06. GAAP EPS of $0.01 for Q1 were much higher than the prior-year quarter's $0.00 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 17.6%, 330 basis points worse than the prior-year quarter. Operating margin was 0.9%, 70 basis points better than the prior-year quarter. Net margin was 0.6%, 50 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $978.6 million. The average EPS estimate is $0.44.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 36 members rating the stock outperform and five members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Accretive Health a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Accretive Health is outperform, with an average price target of $28.00.

The article What to Expect From Accretive Health originally appeared on Fool.com.

Seth Jaysonhad 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. The Motley Fool has no positions in the stocks mentioned above. 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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