Team Health Holdings Meets on the Top Line, Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

Team Health Holdings (NYS: TMH) reported earnings on July 30. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Team Health Holdings met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew. GAAP earnings per share increased significantly.


Gross margins dropped, operating margins dropped, net margins grew.

Revenue details
 Team Health Holdings booked revenue of $579.7 million. The 12 analysts polled by S&P Capital IQ foresaw sales of $585.9 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $506.3 million.

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

EPS details
 EPS came in at $0.44. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.45 per share. Non-GAAP EPS of $0.44 for Q2 were 13% higher than the prior-year quarter's $0.39 per share. GAAP EPS of $0.26 for Q2 were 24% higher than the prior-year quarter's $0.21 per share.

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

Margin details
 For the quarter, gross margin was 18.3%, 80 basis points worse than the prior-year quarter. Operating margin was 6.1%, 210 basis points worse than the prior-year quarter. Net margin was 3.2%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $600.6 million. On the bottom line, the average EPS estimate is $0.46.

Next year's average estimate for revenue is $2.37 billion. The average EPS estimate is $1.77.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 30 members out of 31 rating the stock outperform, and one members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Team Health Holdings a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Team Health Holdings is buy, with an average price target of $43.50.

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The article Team Health Holdings Meets on the Top Line, Misses Where it Counts originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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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