The 10-second takeaway
For the quarter ended March 31 (Q4), CorVel met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins dropped, and net margins expanded.
CorVel logged revenue of $104.4 million. The one analyst polled by S&P Capital IQ wanted to see sales of $105.2 million on the same basis. GAAP reported sales were 3.9% higher than the prior-year quarter's $100.5 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 $0.44. The one earnings estimate compiled by S&P Capital IQ averaged $0.70 per share. GAAP EPS of $0.44 for Q4 were 100% higher than the prior-year quarter's $0.22 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 20.6%, 500 basis points worse than the prior-year quarter. Operating margin was 7.9%, 290 basis points worse than the prior-year quarter. Net margin was 4.9%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $107.2 million. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $441.2 million. The average EPS estimate is $2.69.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 50 members out of 58 rating the stock outperform, and eight members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give CorVel a green thumbs-up, and two give it a red thumbs-down.
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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.