The 10-second takeaway
For the quarter ended March 31 (Q1), Healthstream beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share increased significantly.
Gross margins dropped, operating margins grew, net margins grew.
Healthstream reported revenue of $29.6 million. The four analysts polled by S&P Capital IQ expected revenue of $28.7 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $23.7 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 $0.08. The four earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. Non-GAAP EPS of $0.08 for Q1 were 60% higher than the prior-year quarter's $0.05 per share. GAAP EPS of $0.07 for Q1 were 40% higher than the prior-year quarter's $0.05 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 57.8%, 180 basis points worse than the prior-year quarter. Operating margin was 10.7%, 80 basis points better than the prior-year quarter. Net margin was 6.5%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $31.4 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $126.4 million. The average EPS estimate is $0.34.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 65 members out of 72 rating the stock outperform, and seven members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Healthstream 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 Healthstream is outperform, with an average price target of $27.50.
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