Health Management Associates
The 10-second takeaway
For the quarter ended June 30 (Q2), Health Management Associates beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins contracted, net margins dropped.
Health Management Associates booked revenue of $1.69 billion. The 15 analysts polled by S&P Capital IQ wanted to see revenue of $1.62 billion on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $1.40 billion.
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 $0.21. The 19 earnings estimates compiled by S&P Capital IQ averaged $0.20 per share. GAAP EPS of $0.15 for Q2 were 21% lower than the prior-year quarter's $0.19 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.3%, 80 basis points better than the prior-year quarter. Operating margin was 8.8%, 120 basis points worse than the prior-year quarter. Net margin was 2.2%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.64 billion. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $6.71 billion. The average EPS estimate is $0.86.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 216 members out of 254 rating the stock outperform, and 38 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give Health Management Associates a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Health Management Associates is outperform, with an average price target of $10.00.
- Add Health Management Associates to My Watchlist.