NextGen Healthcare, Inc. reported first-quarter fiscal 2021 adjusted earnings per share (EPS) of 21 cents, beating the Zacks Consensus Estimate of 9 cents. Moreover, the bottom line rose 31.3% from the prior-year quarter.
Revenue Details
Revenues of this Zacks Rank #3 (Hold) company amounted to $130.9 million, down 0.8% year over year. However, the top line surpassed the Zacks Consensus Estimate by 13.7%.
Segment Details
The company reported first-quarter fiscal 2021 revenues under the following segments:
Total Recurring revenues were $119.5 million, up 0.1% from the year-ago quarter.
Meanwhile, total Software, hardware and other non-recurring revenues amounted to $11.4 million, down 8.1% on a year-over-year basis.
Margin
In the quarter under review, gross profit totaled $64.5 million, down 3.2% from the prior-year quarter. Gross margin was 49.3%, down 124 basis points (bps).
Adjusted operating profit came in at $5.6 million, up 24.7% year over year.
Adjusted operating margin in the fiscal first quarter was 4.2%, expanding 87 bps.
Fiscal 2021 Guidance
The company is not issuing any guidance for fiscal 2021 considering the uncertainty surrounding the COVID-19 pandemic. It will decide on the guidance after evaluating the scenario once it stabilizes and there is more confidence in the macro environment.
Summing Up
NextGen exited the fiscal first quarter on a strong note. The company benefited from its Recurring segment in the quarter under review. Expansion in adjusted operating margin is another plus. Meanwhile, NextGen’s Software, hardware and other non-recurring revenues were soft in the quarter under review. Significant contraction in gross margin remains a concern. Additionally, NextGen faces stiff rivalry in the MedTech space.
Key Picks
Some better-ranked stocks in the broader medical space are Thermo Fisher Scientific Inc. (TMO - Free Report) , PerkinElmer, Inc. and OPKO Health, Inc. (OPK - Free Report) . While OPKO Health carries a Zacks Rank #2 (Buy), the other two carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher reported second-quarter 2020 adjusted EPS of $3.89, beating the Zacks Consensus Estimate by 45.7%. Revenues of $6.92 billion outpaced the consensus mark by 0.1%.
PerkinElmer reported second-quarter 2020 adjusted EPS of $1.57, surpassing the Zacks Consensus Estimate by 68.8%. Revenues of $811.7 million outpaced the consensus mark by 1.3%.
OPKO Health reported second-quarter 2020 EPS of 5 cents, against the Zacks Consensus Estimate of loss of 7 cents per share. Revenues of $301.2 million surpassed the consensus estimate by 28.4%.
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NextGen Healthcare, Inc. reported first-quarter fiscal 2021 adjusted earnings per share (EPS) of 21 cents, beating the Zacks Consensus Estimate of 9 cents. Moreover, the bottom line rose 31.3% from the prior-year quarter.
Revenue Details
Revenues of this Zacks Rank #3 (Hold) company amounted to $130.9 million, down 0.8% year over year. However, the top line surpassed the Zacks Consensus Estimate by 13.7%.
Segment Details
The company reported first-quarter fiscal 2021 revenues under the following segments:
Total Recurring revenues were $119.5 million, up 0.1% from the year-ago quarter.
Meanwhile, total Software, hardware and other non-recurring revenues amounted to $11.4 million, down 8.1% on a year-over-year basis.
Margin
In the quarter under review, gross profit totaled $64.5 million, down 3.2% from the prior-year quarter. Gross margin was 49.3%, down 124 basis points (bps).
Adjusted operating profit came in at $5.6 million, up 24.7% year over year.
Adjusted operating margin in the fiscal first quarter was 4.2%, expanding 87 bps.
Fiscal 2021 Guidance
The company is not issuing any guidance for fiscal 2021 considering the uncertainty surrounding the COVID-19 pandemic. It will decide on the guidance after evaluating the scenario once it stabilizes and there is more confidence in the macro environment.
Summing Up
NextGen exited the fiscal first quarter on a strong note. The company benefited from its Recurring segment in the quarter under review. Expansion in adjusted operating margin is another plus. Meanwhile, NextGen’s Software, hardware and other non-recurring revenues were soft in the quarter under review. Significant contraction in gross margin remains a concern. Additionally, NextGen faces stiff rivalry in the MedTech space.
Key Picks
Some better-ranked stocks in the broader medical space are Thermo Fisher Scientific Inc. (TMO - Free Report) , PerkinElmer, Inc. and OPKO Health, Inc. (OPK - Free Report) . While OPKO Health carries a Zacks Rank #2 (Buy), the other two carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher reported second-quarter 2020 adjusted EPS of $3.89, beating the Zacks Consensus Estimate by 45.7%. Revenues of $6.92 billion outpaced the consensus mark by 0.1%.
PerkinElmer reported second-quarter 2020 adjusted EPS of $1.57, surpassing the Zacks Consensus Estimate by 68.8%. Revenues of $811.7 million outpaced the consensus mark by 1.3%.
OPKO Health reported second-quarter 2020 EPS of 5 cents, against the Zacks Consensus Estimate of loss of 7 cents per share. Revenues of $301.2 million surpassed the consensus estimate by 28.4%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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