Merge Healthcare Goes Negative
Merge Healthcare (NAS: MRGE) reported earnings on Feb. 15. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Merge Healthcare met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped to a loss.
Gross margins expanded, operating margins grew, and net margins shrank.
Merge Healthcare booked revenue of $64.1 million. The five analysts polled by S&P Capital IQ foresaw net sales of $64.0 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $46.2 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 $0.04. The five earnings estimates compiled by S&P Capital IQ forecast $0.04 per share on the same basis. GAAP EPS were -$0.01 for Q4 against $0.10 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 66.3%, 730 basis points better than the prior-year quarter. Operating margin was 13.7%, 500 basis points better than the prior-year quarter. Net margin was -2.0%, 2,380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $66.3 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $289.2 million. The average EPS estimate is $0.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 101 members out of 121 rating the stock outperform, and 20 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Merge Healthcare a green thumbs-up, and three 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 $8.13.
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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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