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IPC The Hospitalist Beats on Both Top and Bottom Lines

By Seth Jayson - Updated Apr 10, 2017 at 1:42PM

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Just the facts, Fool.

IPC The Hospitalist (Nasdaq: IPCM) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), IPC The Hospitalist beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share grew significantly.

Gross margins increased, operating margins contracted, net margins increased.

Revenue details
IPC The Hospitalist notched revenue of $153.1 million. The 12 analysts polled by S&P Capital IQ expected net sales of $148.6 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $129.8 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 $0.61. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. GAAP EPS of $0.61 for Q1 were 22% higher than the prior-year quarter's $0.50 per share.

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 26.8%, 10 basis points better than the prior-year quarter. Operating margin was 10.5%, 10 basis points worse than the prior-year quarter. Net margin was 6.9%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $149.1 million. On the bottom line, the average EPS estimate is $0.54.

Next year's average estimate for revenue is $604.2 million. The average EPS estimate is $2.20.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 68 members out of 72 rating the stock outperform, and four members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give IPC The Hospitalist a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on IPC The Hospitalist is outperform, with an average price target of $43.30.

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