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NextGen's (NXGN) Q4 Earnings Top Estimates, Bookings Down Y/Y

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

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

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.

Summing Up

NextGen ended the fiscal fourth quarter on a positive note, with adjusted earnings exceeding the Zacks Consensus Estimate.

NextGen witnessed growth in recurring unit. Management presently predicts solid growth in the RCM pipeline as well.

Moreover, the company witnessed significant deal-size growth. Solid bookings too deserve a mention. Further, best-in-KLAS industry recognition for practice management solution is a positive. For investors’ notice, the company anticipates mid-single digit revenue growth by fiscal 2020, reflecting strong leverage in 2021 and 2022 as well. The company remains confident in delivering 20% operating margin in the next three years.

However, the declining gross profit is a negative. Additionally, NextGen faces stiff rivalry in the MedTech space.

Zacks Rank

Currently, NextGen carries a Zacks Rank #2 (Buy).

Earnings of MedTech Majors at a Glance

Some other top-ranked stocks which reported solid results this earning season are Masimo Corporation (MASI - Free Report) , DENTSPLY SIRONA Inc. (XRAY - Free Report) and CONMED Corporation (CNMD - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Masimo Corporation reported first-quarter 2019 adjusted EPS of 79 cents, which surpassed the Zacks Consensus Estimate of 75 cents. The company’s revenues improved 8.8% year over year to $231.7 million and edged past the Zacks Consensus Estimate of $223.6 million. The company carries a Zacks Rank of 2.

DENTSPLY reported adjusted earnings per share (EPS) of 49 cents in the first quarter of 2019, beating the Zacks Consensus Estimate of 38 cents. Revenues came in at $946.2 million and surpassed the Zacks Consensus Estimate of $917.1 million. The company carries a Zacks Rank #2.

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. The company sports a Zacks Rank of 1.

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