The 10-second takeaway
For the quarter ended June 30 (Q1), CorVel beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share expanded significantly.
Margins increased across the board.
CorVel reported revenue of $118.1 million. The one analyst polled by S&P Capital IQ predicted a top line of $111.3 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $104.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.40. The one earnings estimate compiled by S&P Capital IQ anticipated $0.36 per share. GAAP EPS of $0.40 for Q1 were 38% higher than the prior-year quarter's $0.29 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 22.8%, 60 basis points better than the prior-year quarter. Operating margin was 11.9%, 140 basis points better than the prior-year quarter. Net margin was 7.3%, 100 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $112.0 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $453.0 million. The average EPS estimate is $1.43.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 52 members out of 60 rating the stock outperform, and eight members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 give CorVel a green thumbs-up, and one give it a red thumbs-down.
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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. 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.