The 10-second takeaway
For the quarter ended March 31 (Q1), MEDNAX met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share grew.
Margins dropped across the board.
MEDNAX logged revenue of $502.7 million. The 14 analysts polled by S&P Capital IQ wanted to see revenue of $503.3 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $422.6 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 $1.10. The 15 earnings estimates compiled by S&P Capital IQ predicted $1.09 per share. GAAP EPS of $1.10 for Q1 were 12% higher than the prior-year quarter's $0.98 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 30.6%, 100 basis points worse than the prior-year quarter. Operating margin was 18.2%, 60 basis points worse than the prior-year quarter. Net margin was 11.0%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $537.1 million. On the bottom line, the average EPS estimate is $1.37.
Next year's average estimate for revenue is $2.15 billion. The average EPS estimate is $5.44.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 175 members out of 181 rating the stock outperform, and six members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give MEDNAX a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MEDNAX is outperform, with an average price target of $91.93.
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