HMS Holdings (Nasdaq: HMSY) reported earnings on Feb. 22. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), HMS Holdings met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share increased significantly.

Gross margins dropped, operating margins increased, net margins grew.

Revenue details
 HMS Holdings reported revenue of $133.1 million. The nine analysts polled by S&P Capital IQ expected to see sales of $134.6 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $99.7 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 $0.27. The nine earnings estimates compiled by S&P Capital IQ averaged $0.26 per share. Non-GAAP EPS of $0.27 for Q4 were 50% higher than the prior-year quarter's $0.18 per share. GAAP EPS of $0.23 for Q4 were 77% higher than the prior-year quarter's $0.13 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 42.6%, 670 basis points worse than the prior-year quarter. Operating margin was 27.9%, 330 basis points better than the prior-year quarter. Net margin was 15.0%, 380 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $125.9 million. On the bottom line, the average EPS estimate is $0.19.

Next year's average estimate for revenue is $576.0 million. The average EPS estimate is $0.97.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 278 members out of 294 rating the stock outperform, and 16 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give HMS Holdings 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 HMS Holdings is outperform, with an average price target of $27.86.

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