Quality Systems (Nasdaq: QSII) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Quality Systems beat slightly on revenues and missed on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and earnings per share expanded significantly.

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

Revenue details
Quality Systems reported revenue of $112.8 million. The 21 analysts polled by S&P Capital IQ wanted to see a top line of $110.7 million. Sales were 23% higher than the prior-year quarter's $91.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.36. The 22 earnings estimates compiled by S&P Capital IQ forecast $0.38 per share. GAAP EPS of $0.36 for Q3 were 20% higher than the prior-year quarter's $0.30 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 66.0%, 120 basis points better than the prior-year quarter. Operating margin was 28.8%, 70 basis points better than the prior-year quarter. Net margin was 18.7%, 40 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $116.1 million. On the bottom line, the average EPS estimate is $0.41.

Next year's average estimate for revenue is $434.6 million. The average EPS estimate is $1.49.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,116 members out of 2,180 rating the stock outperform, and 64 members rating it underperform. Among 833 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 819 give Quality Systems a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quality Systems is outperform, with an average price target of $44.93.

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