The 10-second takeaway
For the quarter ended June 30 (Q2), Accretive Health met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Accretive Health booked revenue of $236.7 million. The eight analysts polled by S&P Capital IQ expected to see revenue of $235.3 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $183.6 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 $0.03. The nine earnings estimates compiled by S&P Capital IQ averaged $0.08 per share. GAAP EPS were -$0.01 for Q2 against $0.08 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 19.1%, 650 basis points worse than the prior-year quarter. Operating margin was -0.6%, 780 basis points worse than the prior-year quarter. Net margin was -0.2%, 490 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $236.8 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $977.3 million. The average EPS estimate is $0.41.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 36 members rating the stock outperform and five members rating it underperform. Among seven CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Accretive Health a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Accretive Health is outperform, with an average price target of $13.67.
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