The 10-second takeaway
For the quarter ended Sep. 30 (Q3), MEDNAX met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew.
Margins dropped across the board.
MEDNAX booked revenue of $473.1 million. The 14 analysts polled by S&P Capital IQ foresaw revenue of $469.9 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $407.7 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 $1.32. The 15 earnings estimates compiled by S&P Capital IQ predicted $1.27 per share. GAAP EPS of $1.32 for Q3 were 11% higher than the prior-year quarter's $1.19 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.6%, 80 basis points worse than the prior-year quarter. Operating margin was 22.7%, 60 basis points worse than the prior-year quarter. Net margin was 13.9%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $473.9 million. On the bottom line, the average EPS estimate is $1.29.
Next year's average estimate for revenue is $1.82 billion. The average EPS estimate is $4.79.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 178 members out of 184 rating the stock outperform, and six members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give MEDNAX a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MEDNAX is outperform, with an average price target of $80.36.
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