Merge Healthcare (Nasdaq: MRGE) reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Merge Healthcare met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share shrank to a loss. GAAP loss per share increased.

Gross margins dropped, operating margins expanded, net margins dropped.

Revenue details
Merge Healthcare notched revenue of $63.6 million. The five analysts polled by S&P Capital IQ anticipated sales of $63.7 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 details
EPS came in at -$0.01. The four earnings estimates compiled by S&P Capital IQ anticipated $0.04 per share. Non-GAAP EPS were -$0.01 for Q1 compared to $0.03 per share for the prior-year quarter. GAAP EPS were -$0.07 for Q1 compared to -$0.02 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 58.5%, 360 basis points worse than the prior-year quarter. Operating margin was 10.7%, 80 basis points better than the prior-year quarter. Net margin was -10.2%, 720 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $65.6 million. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $265.1 million. The average EPS estimate is $0.16.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 111 members out of 132 rating the stock outperform, and 21 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 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 outperform, with an average price target of $3.87.

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