The 10-second takeaway
For the quarter ended Sep. 30 (Q3), AMERIGROUP beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share shrank significantly.
Margins contracted across the board.
AMERIGROUP reported revenue of $2.45 billion. The 13 analysts polled by S&P Capital IQ expected sales of $2.39 billion on the same basis. GAAP reported sales were 53% higher than the prior-year quarter's $1.60 billion.
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 $0.62. The 16 earnings estimates compiled by S&P Capital IQ anticipated $1.36 per share. GAAP EPS of $0.62 for Q3 were 35% lower than the prior-year quarter's $0.96 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 13.1%, 320 basis points worse than the prior-year quarter. Operating margin was 2.7%, 230 basis points worse than the prior-year quarter. Net margin was 1.3%, 170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.42 billion. On the bottom line, the average EPS estimate is $1.26.
Next year's average estimate for revenue is $8.77 billion. The average EPS estimate is $3.84.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AMERIGROUP is hold, with an average price target of $86.83.
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