SXC Health Solutions (Nasdaq: SXCI) reported earnings on Feb. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SXC Health Solutions beat expectations on revenues and met expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
SXC Health Solutions booked revenue of $1.38 billion. The 21 analysts polled by S&P Capital IQ expected revenue of $1.27 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $526.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.48. The 21 earnings estimates compiled by S&P Capital IQ forecast $0.48 per share on the same basis. GAAP EPS of $0.42 for Q4 were 56% higher than the prior-year quarter's $0.27 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 6.5%, 440 basis points worse than the prior-year quarter. Operating margin was 2.9%, 240 basis points worse than the prior-year quarter. Net margin was 1.9%, 130 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.55 billion. On the bottom line, the average EPS estimate is $0.49.

Next year's average estimate for revenue is $6.63 billion. The average EPS estimate is $2.30.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 277 members out of 291 rating the stock outperform, and 14 members rating it underperform. Among 113 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give SXC Health Solutions a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SXC Health Solutions is outperform, with an average price target of $65.03.

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