Merge Healthcare Earnings: Here’s Why Shares are Down Now

Merge Healthcare Incorporated. (NASDAQ:MRGE) had a loss 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 down 3.85%.

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Merge Healthcare Incorporated. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.01 in the quarter versus EPS of $0.03 in the year-earlier quarter.

Revenue: Rose 4.3% to $63.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Merge Healthcare Incorporated. reported adjusted EPS loss of $0.01 per share. By that measure, the company missed the mean analyst estimate of $0.03. It missed the average revenue estimate of $63.77 million.

Quoting Management: “Our record first quarter results, combined with our successful debt refinancing, provides a solid start to the year, an immediate benefit to our bottom-line and confidence in our long-term financial health and stability,” said Jeff Surges, CEO of Merge Healthcare. “As health systems look beyond their electronic health record (EHR) implementations and to their next set of strategic priorities, including Meaningful Use Stage Two, we expect to see continued momentum and adoption of our enterprise imaging and subscription-based offerings.”

Key Stats (on next page)…

Revenue decreased 1.62% from $64.65 million in the previous quarter. EPS decreased to $-0.01 in the quarter versus EPS of $0.03 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 $0.04 and has not changed. For the current year, the average estimate has moved up from a profit of $0.16 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)