What to Expect from Quality Systems

Quality Systems (NAS: QSII) is expected to report Q4 earnings around May 17. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Quality Systems's revenues will grow 7.9% and EPS will grow 12.0%.

The average estimate for revenue is $117.6 million. On the bottom line, the average EPS estimate is $0.28.


Revenue details
Last quarter, Quality Systems booked revenue of $114.5 million. GAAP reported sales were 1.5% higher than the prior-year quarter's $112.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.26. GAAP EPS of $0.26 for Q3 were 28% lower than the prior-year quarter's $0.36 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 59.3%, 670 basis points worse than the prior-year quarter. Operating margin was 20.4%, 840 basis points worse than the prior-year quarter. Net margin was 13.6%, 510 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $466.5 million. The average EPS estimate is $1.08.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,114 members out of 2,181 rating the stock outperform, and 67 members rating it underperform. Among 675 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 661 give Quality Systems a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quality Systems is hold, with an average price target of $16.45.

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The article What to Expect from Quality Systems originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Quality Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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