The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Air Methods met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins increased across the board.
Air Methods notched revenue of $221.3 million. The six analysts polled by S&P Capital IQ looked for a top line of $220.8 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $185.2 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 $2.14. The six earnings estimates compiled by S&P Capital IQ predicted $2.00 per share. GAAP EPS of $2.14 for Q3 were 49% higher than the prior-year quarter's $1.44 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 43.5%, 150 basis points better than the prior-year quarter. Operating margin was 23.6%, 370 basis points better than the prior-year quarter. Net margin was 12.6%, 260 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $202.5 million. On the bottom line, the average EPS estimate is $1.27.
Next year's average estimate for revenue is $835.5 million. The average EPS estimate is $6.66.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 247 members out of 267 rating the stock outperform, and 20 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Air Methods a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Air Methods is outperform, with an average price target of $122.80.
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