What Does Wall Street See for MEDNAX's Q2?

Checking expectations

Seth Jayson
Seth Jayson
Jul 26, 2013 at 12:00AM
Other

MEDNAX (NYSE: MD) is expected to report Q2 earnings around July 30. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict MEDNAX's revenues will increase 18.4% and EPS will grow 11.5%.

The average estimate for revenue is $532.0 million. On the bottom line, the average EPS estimate is $1.36.

Revenue details
Last quarter, MEDNAX logged revenue of $502.7 million. 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 details
Last quarter, EPS came in at $1.10. 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.

Recent performance
For the preceding 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.

Looking ahead

The full year's average estimate for revenue is $2.16 billion. The average EPS estimate is $5.45.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 173 members out of 180 rating the stock outperform, and seven members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 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 $91.00.

Is MEDNAX the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.