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NextGen Healthcare (NXGN) Gains 9.7% Since Q2 Earnings Beat

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  • NXGN
  • TMO
  • ANGO
  • WST

Shares of NextGen Healthcare, Inc. NXGN rose 9.7% on Oct 29, following the company's fiscal second-quarter 2022 results.

The company reported fiscal second-quarter 2022 adjusted earnings per share (EPS) of 29 cents, beating the Zacks Consensus Estimate of 23 cents by 26.1%. However, the bottom line declined 3.3% from the prior-year quarter.

GAAP loss per share in the quarter was 10 cents, against the year-ago quarter’s GAAP EPS of 16 cents.

Revenue Details

Revenues were $149.3 million, up 7% year over year. The top line surpassed the Zacks Consensus Estimate by 4.1%.

Segment Details

The company reported second-quarter fiscal 2022 revenues under the following segments:

Total Recurring revenues were $135.6 million, up 8% from the year-ago quarter.

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

Total Software, hardware and other non-recurring revenues amounted to $13.7 million, down 4.4% on a year-over-year basis.

Margins

In the quarter under review, gross profit totaled $76.6 million, up 7.8% from the prior-year quarter. Gross margin was 51.3%, up 50 basis points (bps).

Total operating expenses amounted to $84.5 million, up 39.1% from the year-ago quarter.

Operating loss totaled $7.9 million, against the year-ago quarter operating income of $10.3 million.

Cash Position

Cash and cash equivalents were $75.3 million at the end of the fiscal second quarter, compared with $63 million in the previous quarter.

Cumulative net cash flow from operations in the fiscal second quarter was $20.5 million, compared with $48 million in the prior-year period.

Fiscal 2022 Guidance Updated

The company projects revenues in the range of $584 million to $590 million (up from the previously guided range of $576-$586 million). The Zacks Consensus Estimate for the same is pegged at $582.2 million.

Adjusted EPS is projected in the band of 90-96 cents (up from the prior guidance of 89-95 cents). The Zacks Consensus Estimate for the same stands at 93 cents.

Summing Up

NextGen Healthcare exited the fiscal second quarter on a strong note, wherein both earnings and revenues beat the Zacks Consensus Estimate. The company benefited from its operating segments in the quarter under review. Expansion in gross margin bodes well. Per management, NextGen Healthcare exhibited solid performance in the quarter under review indicating higher demand for its expansive offerings.

On the flip side, the company faces intense competition in the MedTech space. It reported an operating loss in the quarter under review, which is a woe. Increase in operating expenses remains a concern.

Zacks Rank

NextGen Healthcare currently carries a Zacks Rank #3 (Hold).

Earnings of Other MedTech Majors at a Glance

Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Thermo Fisher Scientific Inc. TMO, West Pharmaceutical Services, Inc. WST, and AngioDynamics, Inc. ANGO. While both Thermo Fisher and AngioDynamics sport a Zacks Rank of 1 (Strong Buy), West Pharmaceutical carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which beat the Zacks Consensus Estimate by 23.3%. Third-quarter revenues of $9.33 billion outpaced the consensus mark by 12%.

West Pharmaceutical reported third-quarter 2021 adjusted EPS of $2.06, which surpassed the Zacks Consensus Estimate by 13.2%. Third-quarter revenues of $706.5 million outpaced the Zacks Consensus Estimate by 3.2%.

AngioDynamics reported first-quarter fiscal 2022 loss per share of 2 cents, narrower than the Zacks Consensus Estimate of a loss of 5 cents. Revenues of $76.9 million surpassed the Zacks Consensus Estimate by 8.4%.


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