HMS Holdings Corp. reported adjusted earnings of 28 cents per share in first-quarter 2019, which surpassed the Zacks Consensus Estimate of 22 cents by 27.3%. The bottom line also soared 64.7% from the year-ago quarter.
Revenues totaled $147.9 million, which beat the Zacks Consensus Estimate by nearly 3%. Moreover, the top line improved 4.6% on a year-over-year basis.
Q1 Segmental Analysis by Product
Revenues at this segment were $42.1 million in the first quarter, down 15.3% year over year.
Within Analytical Services, PI revenues (excluding Medicare RAC) amounted to $27.7 million, down 8.6% year over year.
TPM revenues totaled $14.4 million in the quarter under review, reflecting an improvement of 30.9% on a year-over-year basis.
Revenues at the COB segment grossed $105.9 million in the first quarter, up 15.5% year over year.
Q1 Segmental Analysis by Market
Commercial revenues in the first quarter were $76.3 million, reflecting growth of 6.3% on a year-over-year basis.
State government revenues amounted to $61.7 million, which climbed 13% year over year.
Federal and Other revenues totaled $10 million in the quarter, down 33.3% year over year.
Total cost of services in the reported quarter was $99 million, up 1.5% year over year.
Adjusted gross profit came in at $48.9 million, up 11.5% from the prior-year quarter figure. Adjusted gross margin was 33.1% of net revenues, up 200 bps year over year.
Selling, general and administrative expenses totaled $29.2 million, down 8.6% year over year. Operating income in the first quarter was $19.7 million, up 65.3% on a year-over-year basis. Operating margin in the quarter was 13.3% of net revenues, up 490 bps.
Cash and cash equivalents amounted to $214.5 million, up 19.8% from the year-end 2018.
Net cash provided by operating activities for the three months ended Mar 31, 2019, came in at $23.1 million, surging 57.1% from the year-ago quarter.
The company has not provided any update regarding its previously-provided guidance for the full-year 2019. Notably, the company had issued a guidance for the full year 2019 during the fourth quarter earnings call.
For 2019, the company anticipates 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, indicating growth in the range of 27.2-39.2% year over year.
Adjusted EBITDA is expected in the range of $170-$175 million, reflecting growth of 9-12.2%.
Currently, HMS Holdings carries a Zacks Rank #3 (Hold).
Earnings of MedTech Majors at a Glance
Some better-ranked stocks which reported solid results this earning season are Stryker Corporation (
SYK - Free Report) , Abbott Laboratories (
ABT - Free Report) and CONMED Corporation (
CNMD - Free Report) , each carrying a Zacks Rank of 2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.Stryker delivered first-quarter 2019 adjusted earnings per share of $1.88, beating the Zacks Consensus Estimate by 2.2%. Revenues of $3.52 billion were in line with the Zacks Consensus Estimate.
Abbott reported first-quarter 2019 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 3.3%. First-quarter worldwide sales came in at $7.54 billion, above the Zacks Consensus Estimate of $7.47 billion.
CONMED posted first-quarter 2019 adjusted earnings per share of 57 cents, which beat the Zacks Consensus Estimate of 54 cents. Revenues were $218.4 million, surpassing the Zacks Consensus Estimate of $213 million.
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Margin Analysis
Stryker delivered first-quarter 2019 adjusted earnings per share of $1.88, beating the Zacks Consensus Estimate by 2.2%. Revenues of $3.52 billion were in line with the Zacks Consensus Estimate.
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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.
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