Health Management Associates
The 10-second takeaway
For the quarter ended March 31 (Q1), Health Management Associates beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins contracted, net margins shrank.
Health Management Associates chalked up revenue of $1.69 billion. The 17 analysts polled by S&P Capital IQ foresaw revenue of $1.61 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $1.43 billion.
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 $0.24. The 20 earnings estimates compiled by S&P Capital IQ predicted $0.22 per share on the same basis. GAAP EPS of $0.14 for Q1 were 36% lower than the prior-year quarter's $0.22 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 47.0%, 50 basis points better than the prior-year quarter. Operating margin was 9.6%, 80 basis points worse than the prior-year quarter. Net margin was 2.2%, 170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.58 billion. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $6.41 billion. The average EPS estimate is $0.88.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 223 members out of 261 rating the stock outperform, and 38 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Health Management Associates a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Health Management Associates is outperform, with an average price target of $9.88.
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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.