Vanguard Health Systems Beats Estimates But Has a Big Earnings Drop
May 1st 2013 9:12PM
Updated May 2nd 2013 5:15AM
Vanguard Health Systems (NYS: VHS) reported earnings on April 30. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q3), Vanguard Health Systems missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted significantly. GAAP earnings per share contracted significantly.
Margins contracted across the board.
Vanguard Health Systems chalked up revenue of $1.50 billion. The 11 analysts polled by S&P Capital IQ predicted a top line of $1.60 billion on the same basis. GAAP reported sales were 5.3% lower than the prior-year quarter's $1.58 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.27. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.24 per share. Non-GAAP EPS of $0.27 for Q3 were 53% lower than the prior-year quarter's $0.57 per share. GAAP EPS of $0.26 for Q3 were 53% lower than the prior-year quarter's $0.55 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 18.7%, much worse than the prior-year quarter. Operating margin was 5.8%, 130 basis points worse than the prior-year quarter. Net margin was 1.4%, 140 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.57 billion. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $6.17 billion. The average EPS estimate is $0.76.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Vanguard Health Systems is outperform, with an average price target of $17.11.
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