The 10-second takeaway
For the quarter ended March 31 (Q1), Air Methods beat expectations on revenues and crushed expectations on earnings per share.
Compared with the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins expanded across the board.
Air Methods reported revenue of $190.8 million. The four analysts polled by S&P Capital IQ expected a top line of $182.6 million on the same basis. GAAP reported sales were 45% higher than the prior-year quarter's $131.9 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 $0.97. The three earnings estimates compiled by S&P Capital IQ predicted $0.69 per share. GAAP EPS of $0.97 for Q1 were 116% higher than the prior-year quarter's $0.45 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 37.1%, 130 basis points better than the prior-year quarter. Operating margin was 13.1%, 370 basis points better than the prior-year quarter. Net margin was 6.5%, 220 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $209.7 million. On the bottom line, the average EPS estimate is $1.56.
Next year's average estimate for revenue is $817.9 million. The average EPS estimate is $5.55.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 194 members out of 212 rating the stock outperform, and 18 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Air Methods a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Air Methods is buy, with an average price target of $104.33.
The health-care investing landscape is littered with also-rans and a few major winners. Is Air Methods prepared for the future? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will deliver amazing returns during the next few years. Get instant access to this free report.
- Add Air Methods to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the 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 don't 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.