The 10-second takeaway
For the quarter ended June 30 (Q2), MEDNAX met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share grew.
Margins dropped across the board.
MEDNAX booked revenue of $529.2 million. The 13 analysts polled by S&P Capital IQ anticipated net sales of $532.0 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $449.5 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 $1.37. The 15 earnings estimates compiled by S&P Capital IQ predicted $1.36 per share. GAAP EPS of $1.37 for Q2 were 12% higher than the prior-year quarter's $1.22 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 33.6%, 100 basis points worse than the prior-year quarter. Operating margin was 21.4%, 80 basis points worse than the prior-year quarter. Net margin was 13.1%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $562.2 million. On the bottom line, the average EPS estimate is $1.49.
Next year's average estimate for revenue is $2.16 billion. The average EPS estimate is $5.45.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 172 members out of 179 rating the stock outperform, and seven members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 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 $98.50.
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