The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Accretive Health beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Margins increased across the board.
Accretive Health logged revenue of $260.1 million. The nine analysts polled by S&P Capital IQ wanted to see a top line of $254.3 million on the same basis. GAAP reported sales were 53% higher than the prior-year quarter's $170.0 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 $0.17. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share on the same basis. GAAP EPS of $0.13 for Q4 were 160% higher than the prior-year quarter's $0.05 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.2%, 270 basis points better than the prior-year quarter. Operating margin was 8.5%, 310 basis points better than the prior-year quarter. Net margin was 5.1%, 180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $229.8 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $1.11 billion. The average EPS estimate is $0.64.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 34 members out of 43 rating the stock outperform, and nine members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Accretive Health a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Accretive Health is outperform, with an average price target of $28.75.
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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.