Performant Financial (PFMT) Tops Q4 EPS by 5c, Beats on Revenues; Offers Business Outlook

Performant Financial (NASDAQ: PFMT) reported Q4 EPS of $0.02, $0.05 better than the analyst estimate of ($0.03). Revenue for the quarter came in at $33.3 million versus the consensus estimate of $30.15 million.

Fourth Quarter Financial Highlights

• Total revenues of $33.3 million, compared to $33.8 million in the prior year period, down 1.5%
• Net income of $0.5 million or $0.01 per diluted share, compared to net loss of $12.3 million, or $(0.24) per diluted share, in the prior year period
• Adjusted EBITDA of $2.0 million, compared to $4.9 million in the prior year period
• Adjusted net income of $1.3 million, or $0.02 per diluted share, compared to adjusted net loss of $1.5 million or $(0.03) per diluted share, in the prior year period

Business Outlook

“Looking ahead to 2018, we have several large opportunities, although these opportunities will require investment during 2018. These opportunities include the new Department of Education contract, which is currently in protest process, the Medicare as Secondary Payer Commercial Repayment Center contract, and our two new Medicare Recovery Audit Contracts with CMS, for Regions 1 and 5, which are still in their early contract stage. We expect that these contracts that we are implementing in 2018 will have strong financial contribution as we look forward from 2018, but implementation expenses during 2018 will bring down margins. With that in mind, we are providing full year 2018 revenue and adjusted EBITDA guidance of $123 to $150 million and $2 to $6 million, respectively. This guidance does not include the new Department of Education contract which would require additional investment in 2018, and the balance sheet impact of closing out our old Region A CMS contract,” concluded Im.

For earnings history and earnings-related data on Performant Financial (PFMT) click here.

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