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.
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%.
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.
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.
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.
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%.
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