The 10-second takeaway
For the quarter ended March 31 (Q1), ExamWorks Group beat expectations on revenues and missed expectations on earnings per share.
Compared with the prior-year quarter, revenue grew significantly and GAAP loss per share expanded.
Margins contracted across the board.
ExamWorks Group booked revenue of $123.7 million. The three analysts polled by S&P Capital IQ expected net sales of $117.7 million on the same basis. GAAP reported sales were 86% higher than the prior-year quarter's $66.6 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 -$0.13. The four earnings estimates compiled by S&P Capital IQ forecast -$0.11 per share. GAAP EPS were -$0.13 for Q1 against -$0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.4%, 20 basis points worse than the prior-year quarter. Operating margin was -0.1%, 140 basis points worse than the prior-year quarter. Net margin was -3.5%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $124.9 million. On the bottom line, the average EPS estimate is -$0.08.
Next year's average estimate for revenue is $515.6 million. The average EPS estimate is -$0.37.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 12 members out of 19 rating the stock outperform, and seven members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), four give ExamWorks Group 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 ExamWorks Group is outperform, with an average price target of $12.75.
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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.