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NextGen (NXGN) Q2 Earnings Beat, Revenues Miss Estimates
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NextGen Healthcare, Inc. reported second-quarter fiscal 2020 adjusted earnings per share (EPS) of 24 cents, flat with the year-ago quarter’s figure. The metric edged past the Zacks Consensus Estimate by a penny.
Revenues of this Zacks Rank #3 (Hold) company totaled $134.3 million, up 3% year over year. However, the figure missed the Zacks Consensus Estimate by a nominal 0.1%.
Bookings Update
Bookings for the quarter came in at $36.6 million, up 1.4% from the year-ago quarter’s figure.
NEXTGEN HEALTHCARE, INC Price, Consensus and EPS Surprise
The company reported second-quarter fiscal 2020 revenues under the following segments:
Total Recurring revenues grossed $120.6 million, up 3.7% from the year-ago quarter’s figure.
Meanwhile, total Software, hardware and other non-recurring revenues came in at $13.7 million, down 2.4% on a year-over-year basis. Per management, this reflects headwinds in the managed services and software areas.
Margin
In the quarter under review, gross profit totaled $68.5 million, down 1%% from the prior-year quarter’s tally. Gross margin was 51%, down 210 basis points (bps).
Adjusted operating income in the fiscal second quarter was $75.4 million, down 3% from the year-ago quarter’s figure. Adjusted operating margin, as a percentage of revenues, was 56.2%, down 340 bps.
Fiscal 2020 View Retained
For fiscal 2020, NextGen continues to expect revenues between $536 million and $550 million. The Zacks Consensus Estimate for revenues is pegged at $541.8 million, which is within the guided range.
Full-year EPS are expected between 82 cents and 90 cents. The Zacks Consensus Estimate for EPS is pegged at 85 cents, which is within the projected range.
Summing Up
NextGen exited the fiscal second quarter on a mixed note. The company gained from its Recurring segment in the quarter under review. Bookings surged in the quarter on significant deal-size growth. Impressive rates of client addition have worked well for NextGen. Management has retained its fiscal 2020 outlook. Meanwhile, NectGen’s Software, hardware and other non-recurring revenues were soft in the quarter. Significant contraction in gross margin and operating margins raises concern. Additionally, NextGen faces stiff rivalry in the MedTech space.
Intuitive Surgical delivered third-quarter 2019 adjusted EPS of $3.43, beating the Zacks Consensus Estimate by 15.9%. Revenues of $1.13 billion surpassed the Zacks Consensus Estimate by 6.6%.
Thermo Fisher delivered third-quarter 2019 adjusted EPS of $2.94, which surpassed the Zacks Consensus Estimate by 2.1%. Revenues of $6.27 billion outpaced the Zacks Consensus Estimate by 1.3%.
ResMed reported third-quarter 2019 adjusted EPS of 93 cents, which beat the Zacks Consensus Estimate of 87 cents by 6.9%. Revenues were $681.1 million, surpassing the Zacks Consensus Estimate by 3.6%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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NextGen (NXGN) Q2 Earnings Beat, Revenues Miss Estimates
NextGen Healthcare, Inc. reported second-quarter fiscal 2020 adjusted earnings per share (EPS) of 24 cents, flat with the year-ago quarter’s figure. The metric edged past the Zacks Consensus Estimate by a penny.
Revenues of this Zacks Rank #3 (Hold) company totaled $134.3 million, up 3% year over year. However, the figure missed the Zacks Consensus Estimate by a nominal 0.1%.
Bookings Update
Bookings for the quarter came in at $36.6 million, up 1.4% from the year-ago quarter’s figure.
NEXTGEN HEALTHCARE, INC Price, Consensus and EPS Surprise
NEXTGEN HEALTHCARE, INC price-consensus-eps-surprise-chart | NEXTGEN HEALTHCARE, INC Quote
Segment Details
The company reported second-quarter fiscal 2020 revenues under the following segments:
Total Recurring revenues grossed $120.6 million, up 3.7% from the year-ago quarter’s figure.
Meanwhile, total Software, hardware and other non-recurring revenues came in at $13.7 million, down 2.4% on a year-over-year basis. Per management, this reflects headwinds in the managed services and software areas.
Margin
In the quarter under review, gross profit totaled $68.5 million, down 1%% from the prior-year quarter’s tally. Gross margin was 51%, down 210 basis points (bps).
Adjusted operating income in the fiscal second quarter was $75.4 million, down 3% from the year-ago quarter’s figure. Adjusted operating margin, as a percentage of revenues, was 56.2%, down 340 bps.
Fiscal 2020 View Retained
For fiscal 2020, NextGen continues to expect revenues between $536 million and $550 million. The Zacks Consensus Estimate for revenues is pegged at $541.8 million, which is within the guided range.
Full-year EPS are expected between 82 cents and 90 cents. The Zacks Consensus Estimate for EPS is pegged at 85 cents, which is within the projected range.
Summing Up
NextGen exited the fiscal second quarter on a mixed note. The company gained from its Recurring segment in the quarter under review. Bookings surged in the quarter on significant deal-size growth. Impressive rates of client addition have worked well for NextGen. Management has retained its fiscal 2020 outlook. Meanwhile, NectGen’s Software, hardware and other non-recurring revenues were soft in the quarter. Significant contraction in gross margin and operating margins raises concern. Additionally, NextGen faces stiff rivalry in the MedTech space.
Earnings of Other MedTech Majors at a Glance
Some better-ranked stocks which posted solid results this earnings season are Intuitive Surgical, Inc. (ISRG - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and ResMed Inc. (RMD - Free Report) , each carrying a Zacks Rank of 2. (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intuitive Surgical delivered third-quarter 2019 adjusted EPS of $3.43, beating the Zacks Consensus Estimate by 15.9%. Revenues of $1.13 billion surpassed the Zacks Consensus Estimate by 6.6%.
Thermo Fisher delivered third-quarter 2019 adjusted EPS of $2.94, which surpassed the Zacks Consensus Estimate by 2.1%. Revenues of $6.27 billion outpaced the Zacks Consensus Estimate by 1.3%.
ResMed reported third-quarter 2019 adjusted EPS of 93 cents, which beat the Zacks Consensus Estimate of 87 cents by 6.9%. Revenues were $681.1 million, surpassing the Zacks Consensus Estimate by 3.6%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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