The 10-second takeaway
For the quarter ended March 31 (Q1), MEDNAX met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased.
Margins shrank across the board.
MEDNAX booked revenue of $422.6 million. The 12 analysts polled by S&P Capital IQ predicted net sales of $423.3 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $382.3 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 $0.94. The 13 earnings estimates compiled by S&P Capital IQ predicted $1.00 per share. GAAP EPS of $0.98 for Q1 were 4.3% higher than the prior-year quarter's $0.94 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 31.6%, 70 basis points worse than the prior-year quarter. Operating margin was 18.8%, 100 basis points worse than the prior-year quarter. Net margin was 11.4%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $439.9 million. On the bottom line, the average EPS estimate is $1.19.
Next year's average estimate for revenue is $1.78 billion. The average EPS estimate is $4.72.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 175 members out of 179 rating the stock outperform, and four members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give MEDNAX a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MEDNAX is outperform, with an average price target of $81.17.
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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.