Merge Healthcare (Nasdaq: MRGE) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), Merge Healthcare missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share contracted.

Gross margins contracted, operating margins dropped, net margins were steady.

Revenue details
 Merge Healthcare reported revenue of $61.0 million. The five analysts polled by S&P Capital IQ wanted to see a top line of $64.7 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $52.7 million.

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

EPS details
 EPS came in at $0.03. The five earnings estimates compiled by S&P Capital IQ anticipated $0.04 per share. GAAP EPS were -$0.02 for Q1 against -$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.

Margin details
 For the quarter, gross margin was 62.1%, 70 basis points worse than the prior-year quarter. Operating margin was 9.9%, 130 basis points worse than the prior-year quarter. Net margin was -3.0%, about the same as the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $68.0 million. On the bottom line, the average EPS estimate is $0.06.

Next year's average estimate for revenue is $281.1 million. The average EPS estimate is $0.29.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 104 members out of 123 rating the stock outperform, and 19 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Merge Healthcare a green thumbs-up, and four 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 $8.38.

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