Air Methods Earnings: Here’s Why Investors are Buying Shares Now

Air Methods Corp. (NASDAQ:AIRM) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2.78%.

Air Methods Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 35.8% to $0.52 in the quarter versus EPS of $0.81 in the year-earlier quarter.

Revenue: Rose 1.67% to $226.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Air Methods Corp. reported adjusted EPS income of $0.52 per share. By that measure, the company missed the mean analyst estimate of $0.6. It missed the average revenue estimate of $227.71 million.

Quoting Management: Aaron Todd, CEO, stated, “While severe increases in weather cancellations and higher maintenance had a significant impact on the quarter, we are pleased to see that decreases in June and July flight volumes appear to be primarily attributed to higher weather cancellations. In addition, the second quarter brought a return to growth in net revenue per patient transport, while days’ sales outstanding, computed using 90-day annualized revenue, decreased from 128 days as of March 31, 2013 to 99 days as of June 30, 2013. We expect meaningful improvement in future earnings based on anticipated improvement in weather and maintenance trends over the coming periods.”

Key Stats (on next page)…

Revenue increased 26.21% from $179.23 million in the previous quarter. EPS increased to $0.52 in the quarter versus EPS of $-0.15 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.85 and has not changed. For the current year, the average estimate has moved down from a profit of $2.05 to a profit of $1.91 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)