ExamWorks Group Increases Sales but Misses Estimates on Earnings

ExamWorks Group (NYSE: EXAM  ) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), ExamWorks Group beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. GAAP loss per share dropped.

Margins increased across the board.

Revenue details
ExamWorks Group reported revenue of $148.7 million. The three analysts polled by S&P Capital IQ looked for revenue of $145.6 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $123.7 million.

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

EPS details
EPS came in at -$0.10. The three earnings estimates compiled by S&P Capital IQ anticipated -$0.07 per share. GAAP EPS were -$0.10 for Q1 versus -$0.13 per share for the prior-year quarter.

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

Margin details
For the quarter, gross margin was 34.5%, 10 basis points better than the prior-year quarter. Operating margin was 1.2%, 120 basis points better than the prior-year quarter. Net margin was -2.4%, 110 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $151.6 million. On the bottom line, the average EPS estimate is -$0.10.

Next year's average estimate for revenue is $607.2 million. The average EPS estimate is -$0.32.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 16 members out of 27 rating the stock outperform, and 11 members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give ExamWorks Group a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ExamWorks Group is outperform, with an average price target of $17.00.

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