Metropolitan Health Networks
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Metropolitan Health Networks missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins grew, operating margins dropped, net margins shrank.
Revenue details
Metropolitan Health Networks reported revenue of $191.1 million. The five analysts polled by S&P Capital IQ hoped for revenue of $197.9 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $92.7 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 four earnings estimates compiled by S&P Capital IQ anticipated $0.13 per share. GAAP EPS of $0.21 for Q3 were 50% higher than the prior-year quarter's $0.14 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 20.1%, 40 basis points better than the prior-year quarter. Operating margin was 11.2%, 150 basis points worse than the prior-year quarter. Net margin was 4.8%, 170 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $200.3 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $785.5 million. The average EPS estimate is $0.55.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 224 members out of 236 rating the stock outperform, and 12 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Metropolitan Health Networks 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 Metropolitan Health Networks is buy, with an average price target of $11.00.
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