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Does The Street Have Health Management Associates Figured Out?

By Seth Jayson - Updated Apr 10, 2017 at 1:50PM

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Checking expectations

Health Management Associates (NYSE: HMA) is expected to report Q1 earnings around April 22. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Health Management Associates's revenues will expand 1.0% and EPS will decrease -58.3%.

The average estimate for revenue is $1.70 billion. On the bottom line, the average EPS estimate is $0.10.

Revenue details
Last quarter, Health Management Associates logged revenue of $1.72 billion. GAAP reported sales were 6.6% higher than the prior-year quarter's $1.39 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.12. 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.

Recent performance
For the preceding quarter, gross margin was 38.8%, 30 basis points better than the prior-year quarter. Operating margin was 10.9%, 10 basis points better than the prior-year quarter. Net margin was 3.3%, 110 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $6.96 billion. The average EPS estimate is $0.85.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 214 members out of 255 rating the stock outperform, and 41 members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give Health Management Associates a green thumbs-up, and eight 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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