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Metropolitan Health Networks Beats Analyst Estimates on EPS

By Seth Jayson - Updated Apr 7, 2017 at 11:49AM

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Just the facts, Fool.

Metropolitan Health Networks (NYSE: MDF) reported earnings on Nov. 8. Here are the numbers you need to know.

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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