NEW YORK (TheStreet) -- Shares of Examworks Group (EXAM) hit an all-time high of $36.84 on Wednesday after the independent medical examiner announced fourth-quarter results that surpassed analysts' expectations.
The company said its fourth-quarter loss narrowed year over year to $1.59 million, or 4 cents a share, from $2.68 million, or 8 cents a share. Revenue increased 13.8% year over year to $158.8 million from $139.6 million. Pro-forma revenue totaled $160.1 million.
Analysts were looking for a fourth-quarter loss of 6 cents a share on revenue of $151.5 million.
The company forecast first-quarter revenue of $165 million to $170 million and full-year revenue growth of 13.5% to 15.5%. Analysts expect first-quarter revenue of $157.6 million.
TheStreet Ratings team rates EXAMWORKS GROUP INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXAMWORKS GROUP INC (EXAM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- EXAM's revenue growth has slightly outpaced the industry average of 11.1%. Since the same quarter one year prior, revenues rose by 17.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 57.14% and other important driving factors, this stock has surged by 117.10% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- EXAMWORKS GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EXAMWORKS GROUP INC reported poor results of -$0.45 versus -$0.25 in the prior year. This year, the market expects an improvement in earnings (-$0.32 versus -$0.45).
- The debt-to-equity ratio of 1.35 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, EXAM has managed to keep a strong quick ratio of 1.62, which demonstrates the ability to cover short-term cash needs.
- The gross profit margin for EXAMWORKS GROUP INC is currently lower than what is desirable, coming in at 33.82%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.47% trails that of the industry average.
- You can view the full analysis from the report here: EXAM Ratings Report