The 10-second takeaway
For the quarter ended March 31 (Q1), AMERIGROUP missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins dropped across the board.
AMERIGROUP reported revenue of $1.77 billion. The 12 analysts polled by S&P Capital IQ expected sales of $1.81 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $1.54 billion.
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 $0.64. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.57 per share. GAAP EPS of $0.64 for Q1 were 53% lower than the prior-year quarter's $1.37 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 15.1%, 330 basis points worse than the prior-year quarter. Operating margin was 3.7%, 390 basis points worse than the prior-year quarter. Net margin was 1.9%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.15 billion. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $8.71 billion. The average EPS estimate is $4.02.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AMERIGROUP is outperform, with an average price target of $79.63.
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