Greenway Medical Technologies Goes Red

Greenway Medical Technologies (NYSE: GWAY  ) reported earnings on Feb. 12. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Greenway Medical Technologies missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share shrank to a loss.

Gross margins expanded, operating margins dropped, net margins dropped.

Revenue details
Greenway Medical Technologies notched revenue of $32.7 million. The eight analysts polled by S&P Capital IQ hoped for net sales of $35.6 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $29.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.00. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.05 per share. GAAP EPS were -$0.03 for Q2 against $1.70 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 53.2%, 180 basis points better than the prior-year quarter. Operating margin was -5.4%, 420 basis points worse than the prior-year quarter. Net margin was -3.0%, 210 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $37.8 million. On the bottom line, the average EPS estimate is $0.07.

Next year's average estimate for revenue is $146.1 million. The average EPS estimate is $0.24.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 18 members out of 26 rating the stock outperform, and eight members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Greenway Medical Technologies a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Greenway Medical Technologies is outperform, with an average price target of $14.50.

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