Computer Programs & Systems (Nasdaq: CPSI) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Computer Programs & Systems beat expectations on revenues and beat expectations on earnings per share.

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

Gross margins grew, operating margins grew, net margins shrank.

Revenue details
Computer Programs & Systems recorded revenue of $53.3 million. The nine analysts polled by S&P Capital IQ predicted net sales of $51.1 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $45.7 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 $0.77. The eight earnings estimates compiled by S&P Capital IQ predicted $0.75 per share. GAAP EPS of $0.77 for Q2 were 2.7% higher than the prior-year quarter's $0.75 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 47.8%, 380 basis points better than the prior-year quarter. Operating margin was 24.7%, 300 basis points better than the prior-year quarter. Net margin was 15.9%, 220 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $50.4 million. On the bottom line, the average EPS estimate is $0.74.

Next year's average estimate for revenue is $201.1 million. The average EPS estimate is $2.85.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 144 members out of 153 rating the stock outperform, and nine members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Computer Programs & Systems a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Computer Programs & Systems is outperform, with an average price target of $54.88.

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