The 10-second takeaway
For the quarter ended June 30 (Q1), Quality Systems missed estimates on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Quality Systems tallied revenue of $118.3 million. The 21 analysts polled by S&P Capital IQ wanted to see revenue of $120.8 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $100.4 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 $0.26. The 23 earnings estimates compiled by S&P Capital IQ averaged $0.35 per share. GAAP EPS of $0.26 for Q1 were 21% lower than the prior-year quarter's $0.33 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 59.1%, 610 basis points worse than the prior-year quarter. Operating margin was 19.9%, 880 basis points worse than the prior-year quarter. Net margin was 13.1%, 580 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $125.6 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $513.5 million. The average EPS estimate is $1.56.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,124 members out of 2,192 rating the stock outperform, and 68 members rating it underperform. Among 586 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 569 give Quality Systems a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quality Systems is hold, with an average price target of $35.90.
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