The 10-second takeaway
For the quarter ended March 31 (Q1), Healthstream beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Healthstream reported revenue of $23.7 million. The five analysts polled by S&P Capital IQ predicted a top line of $22.7 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $18.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.05. The five earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS of $0.05 for Q1 were 29% lower than the prior-year quarter's $0.07 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 59.6%, 220 basis points worse than the prior-year quarter. Operating margin was 9.9%, 390 basis points worse than the prior-year quarter. Net margin was 6.0%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $25.4 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $100.7 million. The average EPS estimate is $0.32.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 78 members out of 83 rating the stock outperform, and five members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Healthstream a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Healthstream is outperform, with an average price target of $19.
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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.