Greenway Medical Technologies
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Greenway Medical Technologies missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share shrank to a loss.
Gross margins expanded, operating margins dropped, net margins dropped.
Greenway Medical Technologies notched revenue of $32.7 million. The eight analysts polled by S&P Capital IQ hoped for net sales of $35.6 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $29.1 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 $0.00. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.05 per share. GAAP EPS were -$0.03 for Q2 against $1.70 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 53.2%, 180 basis points better than the prior-year quarter. Operating margin was -5.4%, 420 basis points worse than the prior-year quarter. Net margin was -3.0%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $37.8 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $146.1 million. The average EPS estimate is $0.24.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 18 members out of 26 rating the stock outperform, and eight members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Greenway Medical Technologies a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Greenway Medical Technologies is outperform, with an average price target of $14.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.