Allscripts Healthcare Solutions Goes Negative

Just the facts, Fool.

Seth Jayson
Seth Jayson
Feb 19, 2013 at 12:00AM
Other

Allscripts Healthcare Solutions (Nasdaq: MDRX) reported earnings on Feb. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Allscripts Healthcare Solutions missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to a loss.

Margins dropped across the board.

Revenue details
Allscripts Healthcare Solutions reported revenue of $350.9 million. The 17 analysts polled by S&P Capital IQ predicted sales of $367.1 million on the same basis. GAAP reported sales were 8.4% lower than the prior-year quarter's $383.2 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 $0.16. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.20 per share. Non-GAAP EPS of $0.16 for Q4 were 36% lower than the prior-year quarter's $0.25 per share. GAAP EPS were -$0.14 for Q4 versus $0.13 per share for the prior-year quarter.

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 38.8%, 580 basis points worse than the prior-year quarter. Operating margin was -7.6%, 1,980 basis points worse than the prior-year quarter. Net margin was -6.9%, 1,320 basis points worse than the prior-year quarter.


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Looking ahead
Next quarter's average estimate for revenue is $365.9 million. On the bottom line, the average EPS estimate is $0.18.

Next year's average estimate for revenue is $1.52 billion. The average EPS estimate is $0.80.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 434 members out of 463 rating the stock outperform, and 29 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Allscripts Healthcare Solutions 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 Allscripts Healthcare Solutions is outperform, with an average price target of $10.90.

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