Computer Programs & Systems (Nasdaq: CPSI) reported earnings on Oct. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Computer Programs & Systems missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.

Gross margins contracted, operating margins dropped, net margins grew.

Revenue details
Computer Programs & Systems reported revenue of $45.2 million. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $47.3 million on the same basis. GAAP reported sales were 7.4% higher than the prior-year quarter's $42.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.63. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.63 per share. GAAP EPS of $0.63 for Q3 were 17% higher than the prior-year quarter's $0.54 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.3%, 200 basis points worse than the prior-year quarter. Operating margin was 22.1%, 80 basis points worse than the prior-year quarter. Net margin was 15.3%, 110 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $53.5 million. On the bottom line, the average EPS estimate is $0.87.

Next year's average estimate for revenue is $186.6 million. The average EPS estimate is $2.71.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 127 members out of 135 rating the stock outperform, and eight members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Computer Programs & Systems a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Computer Programs & Systems is outperform, with an average price target of $65.15.

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