We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
HMS Holdings' (HMSY) Q4 Earnings Beat, Revenues Rise Y/Y
Read MoreHide Full Article
HMS Holdings Corp. reported adjusted earnings of 31 cents per share in fourth-quarter 2018, which surpassed the Zacks Consensus Estimate of 25 cents. In the year-ago quarter, the company’s earnings came in at 24 cents per share.
Revenues totaled $155.8 million, which marginally missed the Zacks Consensus Estimate of $156 million. However, the top line increased 4.9% on a year-over-year basis.
2018 at a Glance
Net revenues in 2018 amounted to $598.3 million, up 14.8% on a year-over-year basis.
Analyzing the segments by market, 2018 Commercial revenues were $323.2 million (54% of net revenues). State government revenues summed $233.9 million (39.1%). Federal and Other revenues totaled $41.2 million (12.7%).
Analyzing the segments by product, Coordination of Benefits (COB) revenues in 2018 were $397.1 million (66.4%). Analytical Services revenues summed $201.2 million (33.6%).
Revenues at this segment were $56.9 million in the fourth quarter, up 32.9% year over year.
Within Analytical Services, PI revenues (excluding Medicare RAC) amounted to $35.5 million, up 32% year over year. Medicare RAC revenues were $5.4 million, which skyrocketed 170% year over year.
TPM revenues totaled $16 million in the quarter under review, mirroring a 15.1% improvement on a year-over-year basis.
COB
Revenues at the COB segment grossed $98.9 million in the fourth quarter, down 6.4% year over year.
Q4 Segmental Analysis by Market
Commercial revenues in the fourth quarter were $84.2 million, reflecting 9.1% growth on a year-over-year basis.
State government revenues amounted to $61.2 million, which decreased 4.7% year over year.
Federal and Other revenues totaled $10.4 million in the quarter, up 46.5% year over year.
Margin Analysis
Total cost of services in the reported quarter was $101.2 million, up 4.4% year over year.
Adjusted gross profit came in at $54.5 million, up 5.9% from the prior-year quarter figure. Adjusted gross margin was 35% of net revenues, up 30 basis points (bps) year over year.
Selling, general and administrative expenses totaled $26.7 million, down 17% year over year. Operating income in the fourth quarter was $27.8 million, up 44.5% on a year-over-year basis. Operating margin in the quarter was 17.9% of net revenues, up 490 bps.
Guidance
For 2019, the Zacks Rank #3 (Hold) company expects revenues between $640 million and $650 million. This depicts year-over-year growth in the band of 8.4-10.2%. The mid-point of $645 million is above the Zacks Consensus Estimate of $636.8 million.
Net income is expected in the band of $64-$70 million, mirroring 27.2-39.2% growth year over year.
Adjusted EBITDA is expected in the range of $170-$175 million, reflecting growth of 9-12.2%.
Earnings of MedTech Majors at a Glance
Some better-ranked MedTech stocks that delivered solid results in the respective quarters are Varian Medical Systems , AngioDynamics (ANGO - Free Report) and CONMED Corporation (CNMD - Free Report) .
Varian reported fiscal first-quarter 2019 adjusted earnings per share (EPS) of $1.06, in line with the Zacks Consensus Estimate. Revenues of $741 million outpaced the consensus mark of $717.9 million. The stock has a Zacks Rank #2 (Buy).
AngioDynamics’ fiscal second-quarter 2019 adjusted EPS of 22 cents exceeded the Zacks Consensus Estimate by a penny. Revenues totaled $91.5 million, which surpassed the consensus estimate by 2.9%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CONMED delivered fourth-quarter 2018 adjusted EPS of 73 cents, in line with the Zacks Consensus Estimate. Revenues of $242.4 million outshined the Zacks Consensus Estimate of $229.2 million. The stock carries a Zacks Rank of 2.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
Image: Bigstock
HMS Holdings' (HMSY) Q4 Earnings Beat, Revenues Rise Y/Y
HMS Holdings Corp. reported adjusted earnings of 31 cents per share in fourth-quarter 2018, which surpassed the Zacks Consensus Estimate of 25 cents. In the year-ago quarter, the company’s earnings came in at 24 cents per share.
Revenues totaled $155.8 million, which marginally missed the Zacks Consensus Estimate of $156 million. However, the top line increased 4.9% on a year-over-year basis.
2018 at a Glance
Net revenues in 2018 amounted to $598.3 million, up 14.8% on a year-over-year basis.
Analyzing the segments by market, 2018 Commercial revenues were $323.2 million (54% of net revenues). State government revenues summed $233.9 million (39.1%). Federal and Other revenues totaled $41.2 million (12.7%).
Analyzing the segments by product, Coordination of Benefits (COB) revenues in 2018 were $397.1 million (66.4%). Analytical Services revenues summed $201.2 million (33.6%).
HMS Holdings Corp Price and Consensus
HMS Holdings Corp Price and Consensus | HMS Holdings Corp Quote
Q4 Segmental Analysis by Product
Analytical Services
Revenues at this segment were $56.9 million in the fourth quarter, up 32.9% year over year.
Within Analytical Services, PI revenues (excluding Medicare RAC) amounted to $35.5 million, up 32% year over year. Medicare RAC revenues were $5.4 million, which skyrocketed 170% year over year.
TPM revenues totaled $16 million in the quarter under review, mirroring a 15.1% improvement on a year-over-year basis.
COB
Revenues at the COB segment grossed $98.9 million in the fourth quarter, down 6.4% year over year.
Q4 Segmental Analysis by Market
Commercial revenues in the fourth quarter were $84.2 million, reflecting 9.1% growth on a year-over-year basis.
State government revenues amounted to $61.2 million, which decreased 4.7% year over year.
Federal and Other revenues totaled $10.4 million in the quarter, up 46.5% year over year.
Margin Analysis
Total cost of services in the reported quarter was $101.2 million, up 4.4% year over year.
Adjusted gross profit came in at $54.5 million, up 5.9% from the prior-year quarter figure. Adjusted gross margin was 35% of net revenues, up 30 basis points (bps) year over year.
Selling, general and administrative expenses totaled $26.7 million, down 17% year over year. Operating income in the fourth quarter was $27.8 million, up 44.5% on a year-over-year basis. Operating margin in the quarter was 17.9% of net revenues, up 490 bps.
Guidance
For 2019, the Zacks Rank #3 (Hold) company expects revenues between $640 million and $650 million. This depicts year-over-year growth in the band of 8.4-10.2%. The mid-point of $645 million is above the Zacks Consensus Estimate of $636.8 million.
Net income is expected in the band of $64-$70 million, mirroring 27.2-39.2% growth year over year.
Adjusted EBITDA is expected in the range of $170-$175 million, reflecting growth of 9-12.2%.
Earnings of MedTech Majors at a Glance
Some better-ranked MedTech stocks that delivered solid results in the respective quarters are Varian Medical Systems , AngioDynamics (ANGO - Free Report) and CONMED Corporation (CNMD - Free Report) .
Varian reported fiscal first-quarter 2019 adjusted earnings per share (EPS) of $1.06, in line with the Zacks Consensus Estimate. Revenues of $741 million outpaced the consensus mark of $717.9 million. The stock has a Zacks Rank #2 (Buy).
AngioDynamics’ fiscal second-quarter 2019 adjusted EPS of 22 cents exceeded the Zacks Consensus Estimate by a penny. Revenues totaled $91.5 million, which surpassed the consensus estimate by 2.9%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CONMED delivered fourth-quarter 2018 adjusted EPS of 73 cents, in line with the Zacks Consensus Estimate. Revenues of $242.4 million outshined the Zacks Consensus Estimate of $229.2 million. The stock carries a Zacks Rank of 2.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>