Team Health Holdings
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Team Health Holdings missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share improved.
Gross margins increased, operating margins contracted, net margins grew.
Team Health Holdings tallied revenue of $462.0 million. The 11 analysts polled by S&P Capital IQ wanted to see sales of $473.4 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $692.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.21. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.28 per share on the same basis. GAAP EPS were $0.19 for Q4 compared to -$0.55 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 55.2%, 110 basis points better than the prior-year quarter. Operating margin was 3.8%, 50 basis points worse than the prior-year quarter. Net margin was 1.6%, 680 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $467.7 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $1.96 billion. The average EPS estimate is $1.35.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 19 members out of 20 rating the stock outperform, and one members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give Team Health Holdings a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Team Health Holdings is outperform, with an average price target of $23.21.
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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.