Quality Systems (Nasdaq: QSII) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Quality Systems missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Quality Systems reported revenue of $114.5 million. The 18 analysts polled by S&P Capital IQ expected sales of $119.3 million on the same basis. GAAP reported sales were 1.5% higher than the prior-year quarter's $112.8 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 $0.26. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.29 per share. GAAP EPS of $0.26 for Q3 were 28% lower than the prior-year quarter's $0.36 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 59.3%, 670 basis points worse than the prior-year quarter. Operating margin was 20.4%, 840 basis points worse than the prior-year quarter. Net margin was 13.6%, 510 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $122.3 million. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $476.1 million. The average EPS estimate is $1.12.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,145 members out of 2,215 rating the stock outperform, and 70 members rating it underperform. Among 698 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 677 give Quality Systems a green thumbs-up, and 21 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quality Systems is hold, with an average price target of $16.45.

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