The 10-second takeaway
For the quarter ended March 31 (Q1), AmSurg beat expectations on revenues and earnings per share.
Compared with the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins dropped across the board.
AmSurg logged revenue of $230.2 million. The 10 analysts polled by S&P Capital IQ expected to see a top line of $219.7 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $179.4 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 $0.50. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.48 per share. GAAP EPS of $0.47 for Q1 were 24% higher than the prior-year quarter's $0.38 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 54.5%, 160 basis points worse than the prior-year quarter. Operating margin was 30.7%, 90 basis points worse than the prior-year quarter. Net margin was 6.4%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $228.4 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $922.9 million. The average EPS estimate is $2.01.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 144 members out of 151 rating the stock outperform, and eight members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give AmSurg a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AmSurg is hold, with an average price target of $28.00.
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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. 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.