The 10-second takeaway
For the quarter ended March 31 (Q1), MedAssets beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased.
Margins expanded across the board.
MedAssets logged revenue of $172.8 million. The 13 analysts polled by S&P Capital IQ expected to see revenue of $164.7 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $149.9 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 $0.41. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.30 per share. Non-GAAP EPS of $0.41 for Q1 were 71% higher than the prior-year quarter's $0.24 per share. GAAP EPS of $0.13 for Q1 were much higher than the prior-year quarter's $0.00 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 80.2%, 110 basis points better than the prior-year quarter. Operating margin was 18.5%, 650 basis points better than the prior-year quarter. Net margin was 4.5%, 470 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $171.0 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $679.7 million. The average EPS estimate is $1.29.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 61 members out of 73 rating the stock outperform, and 12 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give MedAssets a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MedAssets is outperform, with an average price target of $20.88.
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