Merge Healthcare Incorporated. (NASDAQ:MRGE) 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.
Merge Healthcare Incorporated. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 50% to $0.01 in the quarter versus EPS of $0.02 in the year-earlier quarter.
Revenue: Decreased 9.05% to $57.2 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Merge Healthcare Incorporated. reported adjusted EPS income of $0.01 per share. By that measure, the company missed the mean analyst estimate of $0.05. It missed the average revenue estimate of $65.48 million.
Quoting Management: “Speaking on behalf of all of Merge’s Directors, I want to apologize for the company’s very disappointing second quarter results,” said Michael W. Ferro, Jr., Merge’s Chairman of the Board and largest shareholder. “We all strongly believe in the company, its products and its employees. Our new leaders, Justin Dearborn and Nancy Koenig, resurrected Merge five years ago, and they are the right team to get the company back on track. I, personally, plan to continue to invest in Merge, whether in response to opportunities in the market or otherwise.”
Key Stats (on next page)…
Revenue decreased 10.11% from $63.63 million in the previous quarter. EPS increased to $0.01 in the quarter versus EPS of $-0.01 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 $0.06 and has not changed. For the current year, the average estimate has moved down from a profit of $0.18 to a profit of $0.17 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)