Vanguard Health Systems
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Vanguard Health Systems met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Revenue details
Vanguard Health Systems logged revenue of $1.51 billion. The 13 analysts polled by S&P Capital IQ anticipated a top line of $1.53 billion on the same basis. GAAP reported sales were 4.0% higher than the prior-year quarter's $1.61 billion.
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 $0.15. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.17 per share. GAAP EPS of $0.14 for Q2 were 18% lower than the prior-year quarter's $0.17 per share.
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 26.6%, 650 basis points worse than the prior-year quarter. Operating margin was 4.0%, 10 basis points worse than the prior-year quarter. Net margin was 0.7%, 10 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.59 billion. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $6.16 billion. The average EPS estimate is $0.81.
Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Vanguard Health Systems is outperform, with an average price target of $14.04.
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