The 10-second takeaway
For the quarter ended Sep. 30 (Q2), Quality Systems missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Quality Systems booked revenue of $116.1 million. The 16 analysts polled by S&P Capital IQ looked for revenue of $118.6 million on the same basis. GAAP reported sales were 7.9% higher than the prior-year quarter's $107.6 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 $0.26. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. GAAP EPS of $0.26 for Q2 were 26% lower than the prior-year quarter's $0.35 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 60.1%, 640 basis points worse than the prior-year quarter. Operating margin was 21.0%, 830 basis points worse than the prior-year quarter. Net margin was 13.5%, 550 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $123.2 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $486.0 million. The average EPS estimate is $1.18.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,149 members out of 2,217 rating the stock outperform, and 68 members rating it underperform. Among 641 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 623 give Quality Systems a green thumbs-up, and 18 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 $21.38.
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