Health Management Associates
The 10-second takeaway
For the quarter ended June 30 (Q2), Health Management Associates beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins contracted, net margins dropped.
Health Management Associates booked revenue of $1.69 billion. The 15 analysts polled by S&P Capital IQ wanted to see revenue of $1.62 billion on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $1.40 billion.
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 $0.21. The 19 earnings estimates compiled by S&P Capital IQ averaged $0.20 per share. GAAP EPS of $0.15 for Q2 were 21% lower than the prior-year quarter's $0.19 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.3%, 80 basis points better than the prior-year quarter. Operating margin was 8.8%, 120 basis points worse than the prior-year quarter. Net margin was 2.2%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.64 billion. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $6.71 billion. The average EPS estimate is $0.86.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 216 members out of 254 rating the stock outperform, and 38 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give Health Management Associates a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Health Management Associates is outperform, with an average price target of $10.00.
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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 here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Health Management Associates. 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.