Health Management Associates
The 10-second takeaway
For the quarter ended March 31 (Q1), Health Management Associates beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share contracted significantly.
Margins dropped across the board.
Health Management Associates logged revenue of $1.72 billion. The 11 analysts polled by S&P Capital IQ predicted revenue of $1.71 billion 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 came in at $0.13. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.10 per share. Non-GAAP EPS of $0.13 for Q1 were 46% lower than the prior-year quarter's $0.24 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.09 for Q1 were 36% lower than the prior-year quarter's $0.14 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.0%, 180 basis points worse than the prior-year quarter. Operating margin was 7.1%, 370 basis points worse than the prior-year quarter. Net margin was 1.6%, 90 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.75 billion. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $6.96 billion. The average EPS estimate is $0.74.
The stock has a three-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 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 give Health Management Associates a green thumbs-up, and seven 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 $12.14.
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