Back to top

Image: Bigstock

NextGen Healthcare (NXGN) Tops Q1 Earnings & Revenue Estimates

Read MoreHide Full Article

NextGen Healthcare, Inc. (NXGN - Free Report) 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.

NEXTGEN HEALTHCARE, INC Price, Consensus and EPS Surprise

 

NEXTGEN HEALTHCARE, INC Price, Consensus and EPS Surprise

NEXTGEN HEALTHCARE, INC price-consensus-eps-surprise-chart | NEXTGEN HEALTHCARE, INC Quote

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. (PKI - Free Report) 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>>

Published in