MModal (Nasdaq: MODL) reported earnings on Aug. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), MModal missed estimates on revenues and missed estimates on earnings per share.

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

Gross margins expanded, operating margins dropped, net margins dropped.

Revenue details
MModal recorded revenue of $116.0 million. The three analysts polled by S&P Capital IQ looked for a top line of $118.5 million on the same basis. GAAP reported sales were 6.9% higher than the prior-year quarter's $108.4 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 $0.21. The three earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS of $0.05 for Q2 were 55% lower than the prior-year quarter's $0.11 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 43.8%, 390 basis points better than the prior-year quarter. Operating margin was 9.8%, 700 basis points worse than the prior-year quarter. Net margin was 2.6%, 210 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $123.5 million. On the bottom line, the average EPS estimate is $0.33.

Next year's average estimate for revenue is $492.2 million. The average EPS estimate is $1.31.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MModal is hold, with an average price target of $15.33.