Merge Healthcare
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Merge Healthcare missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP loss per share increased.
Margins dropped across the board.
Revenue details
Merge Healthcare reported revenue of $60.4 million. The four analysts polled by S&P Capital IQ looked for sales of $63.1 million on the same basis. GAAP reported sales were 0.5% higher than the prior-year quarter's $60.1 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 $0.01. The three earnings estimates compiled by S&P Capital IQ forecast $0.03 per share. GAAP EPS were -$0.04 for Q3 compared to -$0.01 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 62.0%, 180 basis points worse than the prior-year quarter. Operating margin was 10.0%, 470 basis points worse than the prior-year quarter. Net margin was -6.3%, 460 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $66.0 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $252.8 million. The average EPS estimate is $0.10.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 112 members out of 132 rating the stock outperform, and 20 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 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 $4.58.
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