The 10-second takeaway
For the quarter ended Sep. 30 (Q3), ExamWorks Group beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share grew.
Gross margins dropped, operating margins grew, net margins shrank.
ExamWorks Group booked revenue of $130.1 million. The four analysts polled by S&P Capital IQ predicted revenue of $127.1 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $109.2 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 -$0.14. The three earnings estimates compiled by S&P Capital IQ forecast -$0.18 per share. GAAP EPS were -$0.14 for Q3 compared to -$0.08 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.8%, 10 basis points worse than the prior-year quarter. Operating margin was 1.0%, 120 basis points better than the prior-year quarter. Net margin was -3.6%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $136.8 million. On the bottom line, the average EPS estimate is -$0.14.
Next year's average estimate for revenue is $515.5 million. The average EPS estimate is -$0.49.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 13 members out of 25 rating the stock outperform, and 12 members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), four give ExamWorks Group 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 ExamWorks Group is outperform, with an average price target of $15.13.
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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. 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.