Computer Programs Up 9.14% To $9.67 After Earnings Beat

Friday, March 1, 2024 - Computer Programs (CPSI) reported upside earnings and revenues today.

Computer Programs's earnings came in at an EPS of $0.36 per share, 3.00% higher than estimates for an EPS of $0.35 per share. The firm's earnings are down 41% since reporting $0.61 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus analyst estimates were at $85.3 million. The Healthcare company managed to surpass those expectations for its fourth quarter with revenue of $85.9 million, a positive revenue surprise of $608 thousand (1%). The firm managed 3% growth year-over-year due to Computer Programs reporting quarterly revenue of $83.2 million in its year-ago quarter. Computer Programs achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is up 9.14% to $9.67 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

Trading in the five days leading up to the report earned Computer Programs a Bearish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 30. Meanwhile, the average Wall Street analyst rated the stock a Buy.

Computer Programs and Systems Inc is a provider of healthcare solutions and services for community hospitals and post-acute care facilities. The company's segment includes Acute Care EHR, Post-acute Care EHR, and TruBridge. Acute Care EHR segment consists of acute care software solutions and support sales generated by Evident and Health and. Post-acute Care EHR segment consists of post-acute care software solutions and support sales generated by AHT, and TruBridge segment primarily consists of business management, consulting and managed IT services sales generated by TruBridge and the sale of Rycan's revenue cycle management workflow and automation software. It generates a majority of its revenue from the Acute Care EHR segment.