The 10-second takeaway
For the quarter ended June 30 (Q2), ExamWorks Group beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP loss per share didn't move. GAAP loss per share contracted.
Margins grew across the board.
ExamWorks Group reported revenue of $156.1 million. The three analysts polled by S&P Capital IQ expected to see net sales of $151.6 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $127.8 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 -$0.10. The three earnings estimates compiled by S&P Capital IQ anticipated -$0.10 per share. Non-GAAP EPS of -$0.10 were the same as the prior-year quarter. GAAP EPS were -$0.08 for Q2 compared to -$0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.6%, 50 basis points better than the prior-year quarter. Operating margin was 2.6%, 120 basis points better than the prior-year quarter. Net margin was -1.8%, 80 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $152.9 million. On the bottom line, the average EPS estimate is -$0.07.
Next year's average estimate for revenue is $607.2 million. The average EPS estimate is -$0.32.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 20 members out of 33 rating the stock outperform, and 13 members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give ExamWorks Group a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ExamWorks Group is outperform, with an average price target of $20.75.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.