Universal American Corp
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Universal American Corp met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped.
Margins increased across the board.
Universal American Corp recorded revenue of $549.4 million. The six analysts polled by S&P Capital IQ expected sales of $551.5 million on the same basis. GAAP reported sales were 5.6% lower than the prior-year quarter's $582.2 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 $0.17. The eight earnings estimates compiled by S&P Capital IQ averaged $0.15 per share. GAAP EPS of $0.16 for Q3 were 5.9% 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.
For the quarter, gross margin was 26.4%, 710 basis points better than the prior-year quarter. Operating margin was 4.4%, 20 basis points better than the prior-year quarter. Net margin was 2.5%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $536.6 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $2.16 billion. The average EPS estimate is $0.63.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 58 members out of 64 rating the stock outperform, and six members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Universal American Corp a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Universal American Corp is hold, with an average price target of $11.17.
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