It has been about a month since the last earnings report for Nextgen Healthcare . Shares have lost about 7.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Nextgen Healthcare due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
NextGen's Q4 Earnings Top Estimates, Bookings Down Y/Y
NextGen Healthcare, Inc. reported fourth-quarter fiscal 2019 adjusted earnings of 23 cents per share, up 43.8% from 16 cents reported in the year-ago quarter. Under ASC 605, the company registered pro forma adjusted earnings of 19 cents per share. Notably, both the metrics exceeded the Zacks Consensus Estimate of 16 cents.
Revenues totaled $134.8 million, down 0.8% year over year. Under ASC 605, revenues for the fiscal fourth quarter summed $134.3 million on a pro forma basis. The Zacks Consensus Estimate stands at $133 million.
FY19 at a Glance
For fiscal 2019, the company reported adjusted earnings of 86 cents per share, up 22.9% from 70 cents reported in the year-ago period. Under ASC 605, the company registered pro forma adjusted earnings of 76 cents per share. Notably, both the metrics exceeded the Zacks Consensus Estimate of 64 cents.
Revenues totaled $529.2 million, down 0.8% year over year. Under ASC 605, revenues for the fiscal 2019 amounted to $134.3 million on a pro forma basis. The Zacks Consensus Estimate stands at $527.3 million.
Bookings Update
The company witnessed consistent momentum in bookings, which came in at $133.5 million for the fiscal 2019, up 14.2% from fiscal 2018. At the beginning of fiscal 2019, the company made a commitment to drive substantial bookings growth throughout the year, which is likely to lead to revenue growth in fiscal 2020.
However, bookings decreased 3.8% year over year to $35.4 million in the reported quarter.
Segment Details
The company reported fourth-quarter fiscal 2019 revenues under the following segments:
Total Recurring revenues grossed $120.2 million, up 1.3% from the year-ago quarter’s figure.
Meanwhile, total Software, hardware and other non-recurring revenues came in at $14.6 million, down 14.8% on a year-over-year basis. This downside can primarily be attributed to the completion of large client engagements.
Gross Margin
In the quarter under review, gross profit totaled $72.7 million, down 1.4% from the prior-year quarter’s tally. Gross margin was 53.9%, down 50 bps. Per management, decline was owing to increased amortization.
Fiscal 2020 View
For fiscal 2020, NextGen expects revenues of $543-$559 million. The Zacks Consensus Estimate for revenues is pegged at $555.9 million, which is within the current guidance.
Full-year earnings per share is expected between 86 cents and 94 cents. The Zacks Consensus Estimate for earnings is pegged at 68 cents, which is noticeably below the current guidance.
How Have Estimates Been Moving Since Then?
Fresh estimates followed an upward path over the past two months. The consensus estimate has shifted -16.67% due to these changes.
VGM Scores
At this time, Nextgen Healthcare has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Nextgen Healthcare has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Nextgen Healthcare (NXGN) Down 7.6% Since Last Earnings Report?
It has been about a month since the last earnings report for Nextgen Healthcare . Shares have lost about 7.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Nextgen Healthcare due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
NextGen's Q4 Earnings Top Estimates, Bookings Down Y/Y
NextGen Healthcare, Inc. reported fourth-quarter fiscal 2019 adjusted earnings of 23 cents per share, up 43.8% from 16 cents reported in the year-ago quarter. Under ASC 605, the company registered pro forma adjusted earnings of 19 cents per share. Notably, both the metrics exceeded the Zacks Consensus Estimate of 16 cents.
Revenues totaled $134.8 million, down 0.8% year over year. Under ASC 605, revenues for the fiscal fourth quarter summed $134.3 million on a pro forma basis. The Zacks Consensus Estimate stands at $133 million.
FY19 at a Glance
For fiscal 2019, the company reported adjusted earnings of 86 cents per share, up 22.9% from 70 cents reported in the year-ago period. Under ASC 605, the company registered pro forma adjusted earnings of 76 cents per share. Notably, both the metrics exceeded the Zacks Consensus Estimate of 64 cents.
Revenues totaled $529.2 million, down 0.8% year over year. Under ASC 605, revenues for the fiscal 2019 amounted to $134.3 million on a pro forma basis. The Zacks Consensus Estimate stands at $527.3 million.
Bookings Update
The company witnessed consistent momentum in bookings, which came in at $133.5 million for the fiscal 2019, up 14.2% from fiscal 2018. At the beginning of fiscal 2019, the company made a commitment to drive substantial bookings growth throughout the year, which is likely to lead to revenue growth in fiscal 2020.
However, bookings decreased 3.8% year over year to $35.4 million in the reported quarter.
Segment Details
The company reported fourth-quarter fiscal 2019 revenues under the following segments:
Total Recurring revenues grossed $120.2 million, up 1.3% from the year-ago quarter’s figure.
Meanwhile, total Software, hardware and other non-recurring revenues came in at $14.6 million, down 14.8% on a year-over-year basis. This downside can primarily be attributed to the completion of large client engagements.
Gross Margin
In the quarter under review, gross profit totaled $72.7 million, down 1.4% from the prior-year quarter’s tally. Gross margin was 53.9%, down 50 bps. Per management, decline was owing to increased amortization.
Fiscal 2020 View
For fiscal 2020, NextGen expects revenues of $543-$559 million. The Zacks Consensus Estimate for revenues is pegged at $555.9 million, which is within the current guidance.
Full-year earnings per share is expected between 86 cents and 94 cents. The Zacks Consensus Estimate for earnings is pegged at 68 cents, which is noticeably below the current guidance.
How Have Estimates Been Moving Since Then?
Fresh estimates followed an upward path over the past two months. The consensus estimate has shifted -16.67% due to these changes.
VGM Scores
At this time, Nextgen Healthcare has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Nextgen Healthcare has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.