The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Air Methods beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share increased significantly.
Margins expanded across the board.
Air Methods logged revenue of $216.2 million. The five analysts polled by S&P Capital IQ looked for a top line of $204.6 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $193.3 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 $0.55. The six earnings estimates compiled by S&P Capital IQ averaged $0.44 per share. GAAP EPS of $0.55 for Q4 were 72% higher than the prior-year quarter's $0.32 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 40.2%, 290 basis points better than the prior-year quarter. Operating margin was 17.9%, 320 basis points better than the prior-year quarter. Net margin was 9.9%, 350 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $204.7 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $916.9 million. The average EPS estimate is $2.38.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 266 members out of 284 rating the stock outperform, and 18 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 give Air Methods a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Air Methods is outperform, with an average price target of $42.00.
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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 recommends Air Methods. 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.