HMS Holdings Earnings: Here’s Why Investors are Buying Shares Now

HMS Holdings Corp. (NASDAQ:HMSY) 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. Shares are up 7.52%.

HMS Holdings Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 13.04% to $0.2 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Rose 4.77% to $125.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: HMS Holdings Corp. reported adjusted EPS income of $0.2 per share. By that measure, the company missed the mean analyst estimate of $0.21. It beat the average revenue estimate of $123.69 million.

Quoting Management: “We are in a dynamic healthcare environment,” Lucia remarked, “as Medicaid lives shift rapidly to managed care and implementation of the Affordable Care Act proves increasingly complex. For HMS, healthcare reform serves as a significant growth driver for our business because we can help our clients maneuver through the changing landscape. We are leveraging our leadership position in Medicaid and Medicare payment integrity and adapting our proven tools to meet the needs of commercial clients with multiple lines of business.”

Key Stats (on next page)…

Revenue increased 7.88% from $116.61 million in the previous quarter. EPS increased 33.33% from $0.15 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.25 to a profit $0.23. For the current year, the average estimate has moved down from a profit of $0.95 to a profit of $0.89 over the last ninety days.

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

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