The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MEDNAX met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded.
Margins dropped across the board.
MEDNAX booked revenue of $471.3 million. The 14 analysts polled by S&P Capital IQ predicted revenue of $473.7 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $404.9 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 anticipated $1.30 per share. GAAP EPS of $1.32 for Q4 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 34.2%, 590 basis points worse than the prior-year quarter. Operating margin was 21.9%, 70 basis points worse than the prior-year quarter. Net margin was 14.0%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $504.2 million. On the bottom line, the average EPS estimate is $1.15.
Next year's average estimate for revenue is $2.12 billion. The average EPS estimate is $5.55.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 174 members out of 181 rating the stock outperform, and seven members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give MEDNAX 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 MEDNAX is outperform, with an average price target of $83.75.
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