Team Health Holdings Earnings: Here’s Why Investors are Ambivalent Now

Team Health Holdings, Inc. (NYSE:TMH) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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Team Health Holdings, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 18.92% to $0.44 in the quarter versus EPS of $0.37 in the year-earlier quarter.

Revenue: Rose 20.32% to $575.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Team Health Holdings, Inc. reported adjusted EPS income of $0.44 per share. By that measure, the company missed the mean analyst estimate of $0.44. It beat the average revenue estimate of $560.47 million.

Quoting Management: “We are pleased with our financial results for the first quarter of 2013. We delivered solid growth across revenue, operating cash flow, Adjusted EBITDA and Adjusted EPS,” said TeamHealth Chief Executive Officer, Greg Roth.

Key Stats (on next page)…

Revenue increased 5.7% from $544.84 million in the previous quarter. EPS increased 12.82% from $0.39 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 $0.46 and has not changed. For the current year, the average estimate has moved down from a profit of $1.83 to a profit of $1.8 over the last ninety days.

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