The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MedAssets beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased.
Margins improved across the board.
MedAssets reported revenue of $156.8 million. The 18 analysts polled by S&P Capital IQ hoped for sales of $151.6 million on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $106.9 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 $0.32. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.32 per share on the same basis. GAAP EPS were $0.07 for Q4 versus -$0.87 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 80.1%, 1,150 basis points better than the prior-year quarter. Operating margin was 16.0%, 1,160 basis points better than the prior-year quarter. Net margin was 2.6%, 4,880 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $144.7 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $617.2 million. The average EPS estimate is $1.09.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 59 members out of 70 rating the stock outperform, and 11 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give MedAssets a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MedAssets is outperform, with an average price target of $15.
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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.