Accretive Health (NYSE: AH) is expected to report Q2 earnings on Wednesday. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Accretive Health's revenues will increase 27.5% and EPS will decrease 25.0%.
The average estimate for revenue is $234.1 million. On the bottom line, the average EPS estimate is $0.09.
Revenue details
Last quarter, Accretive Health booked revenue of $253.7 million. GAAP reported sales were 55% higher than the prior-year quarter's $163.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Last quarter, non-GAAP EPS came in at $0.06. GAAP EPS of $0.01 for Q1 were much higher than the prior-year quarter's $0.00 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Recent performance
For the preceding quarter, gross margin was 17.6%, 330 basis points worse than the prior-year quarter. Operating margin was 0.9%, 70 basis points better than the prior-year quarter. Net margin was 0.6%, 50 basis points better than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $978.6 million. The average EPS estimate is $0.44.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 36 members rating the stock outperform and five members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Accretive Health 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 Accretive Health is outperform, with an average price target of $28.00.
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