Healthstream (Nasdaq: HSTM) reported earnings on Oct. 22. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Healthstream beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped.
Gross margins dropped, operating margins increased, net margins dropped.
Revenue details
Healthstream chalked up revenue of $26.4 million. The four analysts polled by S&P Capital IQ foresaw revenue of $25.6 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $20.6 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 $0.07. The four earnings estimates compiled by S&P Capital IQ forecast $0.09 per share. GAAP EPS of $0.07 for Q3 were 13% lower than the prior-year quarter's $0.08 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 59.0%, 260 basis points worse than the prior-year quarter. Operating margin was 14.1%, 100 basis points better than the prior-year quarter. Net margin was 7.5%, 120 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $26.7 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $101.7 million. The average EPS estimate is $0.33.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 74 members out of 84 rating the stock outperform, and 10 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Healthstream 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 Healthstream is outperform, with an average price target of $27.50.
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