Allscripts Healthcare Solutions
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Allscripts Healthcare 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.
Margins expanded across the board.
Allscripts Healthcare Solutions reported revenue of $388.2 million. The 19 analysts polled by S&P Capital IQ predicted a top line of $378.4 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $305.4 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 $0.25. The 21 earnings estimates compiled by S&P Capital IQ anticipated $0.25 per share on the same basis. GAAP EPS were $0.13 for Q4 versus -$0.05 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 44.6%, 20 basis points better than the prior-year quarter. Operating margin was 12.2%, 570 basis points better than the prior-year quarter. Net margin was 6.3%, 980 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $387.3 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $1.63 billion. The average EPS estimate is $1.09.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 455 members out of 479 rating the stock outperform, and 24 members rating it underperform. Among 131 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 128 give Allscripts Healthcare Solutions 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 Allscripts Healthcare Solutions is outperform, with an average price target of $24.41.
The health-care investing landscape is littered with also-rans and a few major winners. Is Allscripts Healthcare Solutions performing well enough for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company Fool co-founder David Gardner believes will deliver amazing returns during the next few years. Click here for instant access to this free report.
- Add Allscripts Healthcare Solutions to My Watchlist.
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.