The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Merge Healthcare met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP loss per share expanded.
Margins shrank across the board.
Merge Healthcare logged revenue of $64.6 million. The four analysts polled by S&P Capital IQ expected to see revenue of $64.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 -$0.13. The four earnings estimates compiled by S&P Capital IQ forecast $0.02 per share. GAAP EPS were -$0.19 for Q4 compared to -$0.01 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 57.3%, 900 basis points worse than the prior-year quarter. Operating margin was -11.6%, 2,530 basis points worse than the prior-year quarter. Net margin was -26.7%, 2,470 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $63.4 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $264.4 million. The average EPS estimate is $0.16.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 110 members out of 131 rating the stock outperform, and 21 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Merge Healthcare 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 Merge Healthcare is hold, with an average price target of $3.88.
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