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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