HMS Holdings (Nasdaq: HMSY) reported earnings on Oct. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), HMS Holdings missed estimates on revenues and missed estimates on earnings per share.

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

Margins dropped across the board.

Revenue details
HMS Holdings logged revenue of $113.2 million. The seven analysts polled by S&P Capital IQ hoped for a top line of $118.7 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $92.4 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 $0.20. The seven earnings estimates compiled by S&P Capital IQ forecast $0.22 per share. GAAP EPS of $0.12 for Q3 were 29% lower than the prior-year quarter's $0.17 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 40.8%, 760 basis points worse than the prior-year quarter. Operating margin was 18.3%, 780 basis points worse than the prior-year quarter. Net margin was 9.3%, 630 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $137.4 million. On the bottom line, the average EPS estimate is $0.28.

Next year's average estimate for revenue is $483.1 million. The average EPS estimate is $0.87.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 282 members out of 300 rating the stock outperform, and 18 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give HMS Holdings 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 HMS Holdings is outperform, with an average price target of $35.88.