Merge Healthcare (Nasdaq: MRGE ) reported earnings on Aug. 6. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Merge Healthcare beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP loss per share improved.
Margins contracted across the board.
Merge Healthcare tallied revenue of $62.9 million. The four analysts polled by S&P Capital IQ predicted a top line of $60.1 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $55.6 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 $0.02. The four earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS were -$0.06 for Q2 compared to -$0.04 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 59.6%, 1,090 basis points worse than the prior-year quarter. Operating margin was 10.0%, 1,030 basis points worse than the prior-year quarter. Net margin was -9.4%, 640 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $63.1 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $252.8 million. The average EPS estimate is $0.10.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 111 members out of 130 rating the stock outperform, and 19 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Merge Healthcare 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 Merge Healthcare is outperform, with an average price target of $5.00.
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