Health Management Associates Inc. (NYSE:HMA) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
Health Management Associates Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 45.83% to $0.13 in the quarter versus EPS of $0.24 in the year-earlier quarter.
Revenue: Rose 16.06% to $1.72 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Health Management Associates Inc. reported adjusted EPS income of $0.13 per share. By that measure, the company missed the mean analyst estimate of $0.15. It beat the average revenue estimate of $1.66 billion.
Quoting Management: “Our first quarter results did not meet our expectations and reflect a difficult operating environment. I believe, however, that we have taken the necessary steps to adjust our cost structure going forward to achieve our previously updated 2013 annual guidance,” said Gary D. Newsome, Health Management’s President and Chief Executive Officer. “As we transition into this new era of health care reform, we intend to continue our patient-centered approach to health care delivery while increasing efficiency and ultimately quality as we enable America’s best local health care.”
Key Stats (on next page)…
Revenue increased 16.41% from $1.48 billion in the previous quarter. EPS increased 8.33% from $0.12 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 $0.21 and has not changed. For the current year, the average estimate has moved down from a profit of $0.91 to a profit of $0.87 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)