AmSurg Increases Sales but Misses Estimates on Earnings

AmSurg (Nasdaq: AMSG  ) reported earnings on Feb. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AmSurg beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew. GAAP earnings per share expanded significantly.

Gross margins contracted, operating margins dropped, net margins increased.

Revenue details
AmSurg recorded revenue of $244.2 million. The seven analysts polled by S&P Capital IQ hoped for revenue of $237.9 million on the same basis. GAAP reported sales were 9.3% higher than the prior-year quarter's $223.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.49. The eight earnings estimates compiled by S&P Capital IQ predicted $0.50 per share. Non-GAAP EPS of $0.49 for Q4 were 6.5% higher than the prior-year quarter's $0.46 per share. GAAP EPS of $0.53 for Q4 were 20% higher than the prior-year quarter's $0.44 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 54.1%, 80 basis points worse than the prior-year quarter. Operating margin was 29.8%, 40 basis points worse than the prior-year quarter. Net margin was 6.9%, 80 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $262.6 million. On the bottom line, the average EPS estimate is $0.52.

Next year's average estimate for revenue is $1.07 billion. The average EPS estimate is $2.17.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 139 members out of 147 rating the stock outperform, and eight members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give AmSurg 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 AmSurg is hold, with an average price target of $28.64.

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