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NextGen Healthcare (NXGN) Tops Q1 Earnings & Revenue Estimates

Zacks Equity Research
·3-min read

NextGen Healthcare, Inc. NXGN reported first-quarter fiscal 2021 adjusted earnings per share (EPS) of 21 cents, beating the Zacks Consensus Estimate of 9 cents. Moreover, the bottom line rose 31.3% from the prior-year quarter.

Revenue Details

Revenues of this Zacks Rank #3 (Hold) company amounted to $130.9 million, down 0.8% year over year. However, the top line surpassed the Zacks Consensus Estimate by 13.7%.

Segment Details

The company reported first-quarter fiscal 2021 revenues under the following segments:

Total Recurring revenues were $119.5 million, up 0.1% from the year-ago quarter.

Meanwhile, total Software, hardware and other non-recurring revenues amounted to $11.4 million, down 8.1% on a year-over-year basis.

Margin

In the quarter under review, gross profit totaled $64.5 million, down 3.2% from the prior-year quarter. Gross margin was 49.3%, down 124 basis points (bps).

Adjusted operating profit came in at $5.6 million, up 24.7% year over year.

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Adjusted operating margin in the fiscal first quarter was 4.2%, expanding 87 bps.

NEXTGEN HEALTHCARE, INC Price, Consensus and EPS Surprise

 

NEXTGEN HEALTHCARE, INC Price, Consensus and EPS Surprise
NEXTGEN HEALTHCARE, INC Price, Consensus and EPS Surprise

NEXTGEN HEALTHCARE, INC price-consensus-eps-surprise-chart | NEXTGEN HEALTHCARE, INC Quote

Fiscal 2021 Guidance

The company is  not issuing any guidance for fiscal 2021 considering the uncertainty surrounding the COVID-19 pandemic. It will decide on the guidance after evaluating the scenario once it stabilizes and there is more confidence in the macro environment.

Summing Up

NextGen exited the fiscal first quarter on a strong note. The company benefited from its Recurring segment in the quarter under review. Expansion in adjusted operating margin is another plus. Meanwhile, NextGen’s Software, hardware and other non-recurring revenues were soft in the quarter under review. Significant contraction in gross margin remains a concern. Additionally, NextGen faces stiff rivalry in the MedTech space.

Key Picks

Some better-ranked stocks in the broader medical space are Thermo Fisher Scientific Inc. TMO, PerkinElmer, Inc. PKI and OPKO Health, Inc. OPK. While OPKO Health carries a Zacks Rank #2 (Buy), the other two carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher reported second-quarter 2020 adjusted EPS of $3.89, beating the Zacks Consensus Estimate by 45.7%. Revenues of $6.92 billion outpaced the consensus mark by 0.1%.

PerkinElmer reported second-quarter 2020 adjusted EPS of $1.57, surpassing the Zacks Consensus Estimate by 68.8%. Revenues of $811.7 million outpaced the consensus mark by 1.3%.

OPKO Health reported second-quarter 2020 EPS of 5 cents, against  the Zacks Consensus Estimate of loss of 7 cents per share. Revenues of $301.2 million surpassed the consensus estimate by 28.4%.

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