The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Accretive Health missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Accretive Health reported revenue of $223.1 million. The eight analysts polled by S&P Capital IQ expected a top line of $231.1 million on the same basis. GAAP reported sales were 1.9% higher than the prior-year quarter's $218.9 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 $0.06. The eight earnings estimates compiled by S&P Capital IQ averaged $0.05 per share. GAAP EPS of $0.03 for Q3 were 57% lower than the prior-year quarter's $0.07 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 20.7%, 170 basis points worse than the prior-year quarter. Operating margin was 2.9%, 270 basis points worse than the prior-year quarter. Net margin was 1.2%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $241.2 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $961.8 million. The average EPS estimate is $0.25.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 34 members out of 38 rating the stock outperform, and four members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Accretive Health 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 Accretive Health is outperform, with an average price target of $13.20.
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