MedAssets
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), MedAssets beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased.
Gross margins dropped, operating margins grew, net margins grew.
Revenue details
MedAssets recorded revenue of $163.4 million. The 15 analysts polled by S&P Capital IQ hoped for a top line of $154.2 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $143.6 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 $0.32. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.26 per share. GAAP EPS were $0.09 for Q3 against -$0.02 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 78.8%, 60 basis points worse than the prior-year quarter. Operating margin was 17.1%, 630 basis points better than the prior-year quarter. Net margin was 3.3%, 400 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $160.5 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $631.8 million. The average EPS estimate is $1.11.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 63 members out of 76 rating the stock outperform, and 13 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give MedAssets 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 MedAssets is outperform, with an average price target of $17.91.
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