Health Management Associates
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Health Management Associates beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins grew, net margins grew.
Health Management Associates reported revenue of $1.72 billion. The 14 analysts polled by S&P Capital IQ predicted revenue of $1.67 billion on the same basis. GAAP reported sales were 6.4% lower than the prior-year quarter's $1.58 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 $0.12. The 23 earnings estimates compiled by S&P Capital IQ forecast $0.21 per share. GAAP EPS of $0.18 for Q4 were 50% higher than the prior-year quarter's $0.12 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 38.8%, 720 basis points worse than the prior-year quarter. Operating margin was 10.9%, 140 basis points better than the prior-year quarter. Net margin was 3.3%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.78 billion. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $7.04 billion. The average EPS estimate is $0.87.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 213 members out of 254 rating the stock outperform, and 41 members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 78 give Health Management Associates a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Health Management Associates is outperform, with an average price target of $9.10.
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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.