The 10-second takeaway
For the quarter ended Dec. 31 (Q3), CorVel missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.
Margins dropped across the board.
CorVel logged revenue of $101.4 million. The one analyst polled by S&P Capital IQ anticipated sales of $106.9 million. Sales were 6.4% higher than the prior-year quarter's $95.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.47. The one earnings estimate compiled by S&P Capital IQ predicted $0.75 per share on the same basis. GAAP EPS of $0.47 for Q3 were 16% lower than the prior-year quarter's $0.56 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 20.9%, 410 basis points worse than the prior-year quarter. Operating margin was 8.8%, 320 basis points worse than the prior-year quarter. Net margin was 5.3%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $109.4 million. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $423.1 million. The average EPS estimate is $2.91.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 51 members out of 61 rating the stock outperform, and 10 members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give CorVel a green thumbs-up, and four give it a red thumbs-down.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.