The 10-second takeaway
For the quarter ended March 31 (Q1), MedAssets beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share expanded to zero.
Margins increased across the board.
MedAssets notched revenue of $149.9 million. The 17 analysts polled by S&P Capital IQ foresaw net sales of $141.9 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $130.6 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 $0.24. The 19 earnings estimates compiled by S&P Capital IQ anticipated $0.18 per share. GAAP EPS dropped to zero from the prior-year quarter's -$0.28.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 79.1%, 250 basis points better than the prior-year quarter. Operating margin was 12.0%, 770 basis points better than the prior-year quarter. Net margin was -0.2%, 1,220 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $150.1 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $607.3 million. The average EPS estimate is $1.06.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 59 members rating the stock outperform and 11 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give MedAssets a green thumbs-up, and four 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 $16.07.
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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.