TeamHealth Holdings (TMH) Tops Q3 EPS by 1c, Raises FY Guidance

TeamHealth Holdings (NYSE: TMH) reported Q3 EPS of $0.60, $0.01 better than the analyst estimate of $0.59. Revenue for the quarter came in at $712.2 million versus the consensus estimate of $688.1 million.

We believe that we remain well positioned to achieve revenue and earnings growth through the remainder of 2014 and have great momentum going into next year. As a result of our financial performance through the first three quarters of 2014 and our current expectations about operating trends and contributions from recent acquisitions over the remainder of the year, we have increased our estimate for net revenue growth for fiscal year 2014. Our revised net revenue range is now between $2.77 billion and $2.79 billion, reflecting an annual growth rate of between 16.0% and 17.0%, which is an increase from the prior guidance of 13.0% to 14.0%. We typically experience a seasonal reduction in operating margins in the fourth quarter and we also anticipate some transitional costs on our recently completed acquisitions. As a result of these expectations, we project Adjusted EBITDA margin for the full year of 2014 to be approximately 11.5%. We have continued to see growth in Medicaid parity revenue and now anticipate parity revenue will be in the range of $34.0 million to $36.0 million for 2014. We are engaged in advocacy efforts towards an extension of the Medicaid parity program in its current form into 2015, but at this time, the federal program is scheduled to expire at the end of 2014. There are a limited number of states that have indicated an intent to continue with a Medicaid parity program into 2015, but we do not believe these state initiatives will be a significant benefit to us," concluded Mr. Snow.

(Street sees FY revenue of $2.71 billion)

For earnings history and earnings-related data on TeamHealth Holdings (TMH) click here.

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