IPC The Hospitalist Misses on Both Revenue and Earnings

IPC The Hospitalist (NAS: IPCM) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), IPC The Hospitalist missed estimates on revenues and missed slightly on earnings per share.

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


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

Revenue details
IPC The Hospitalist reported revenue of $145.8 million. The 11 analysts polled by S&P Capital IQ looked for revenue of $149.6 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $128.5 million.

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

EPS details
EPS came in at $0.53. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.54 per share. Non-GAAP EPS of $0.53 for Q2 were 15% higher than the prior-year quarter's $0.46 per share. GAAP EPS of $0.71 for Q2 were 54% higher than the prior-year quarter's $0.46 per share.

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

Margin details
For the quarter, gross margin was 26.9%, 10 basis points better than the prior-year quarter. Operating margin was 10.1%, 10 basis points worse than the prior-year quarter. Net margin was 8.4%, 230 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $148.2 million. On the bottom line, the average EPS estimate is $0.53.

Next year's average estimate for revenue is $604.7 million. The average EPS estimate is $2.20.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 70 members out of 73 rating the stock outperform, and three members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give IPC The Hospitalist 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 IPC The Hospitalist is hold, with an average price target of $46.75.

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The article IPC The Hospitalist Misses on Both Revenue and Earnings 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, backed by a real-money portfolio. 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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