Team Health Holdings
The 10-second takeaway
For the quarter ended June 30 (Q2), Team Health Holdings met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew. GAAP earnings per share increased significantly.
Gross margins dropped, operating margins dropped, net margins grew.
Team Health Holdings booked revenue of $579.7 million. The 12 analysts polled by S&P Capital IQ foresaw sales of $585.9 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $506.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.44. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.45 per share. Non-GAAP EPS of $0.44 for Q2 were 13% higher than the prior-year quarter's $0.39 per share. GAAP EPS of $0.26 for Q2 were 24% higher than the prior-year quarter's $0.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 18.3%, 80 basis points worse than the prior-year quarter. Operating margin was 6.1%, 210 basis points worse than the prior-year quarter. Net margin was 3.2%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $600.6 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $2.37 billion. The average EPS estimate is $1.77.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 30 members out of 31 rating the stock outperform, and one members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Team Health Holdings a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Team Health Holdings is buy, with an average price target of $43.50.
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