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Inovalon (INOV) Cuts 2016 Revenue and Earnings Guidance
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Leading provider of advanced cloud-based data analytics and data-driven intervention platforms to the healthcare industry, Inovalon Holdings (INOV - Free Report) , lowered its revenue and earnings guidance for full-year 2016.
The market did not react too kindly to this cutback in guidance as the stock fell 1.3% on Monday to finally close at $14.85. The stock represents a negative year-to-date return of almost 12.65% versus the Zacks categorized IT Services sub-industry’s positive return of 2.09%.
However, we are optimistic about continued advancements in Inovalon’s technology platforms, client base, expanding platform applicability, and sales pipeline. Also, a long-term expected earnings growth rate of 19.07% and a projected sales growth of 20.95% instill some confidence in its investors.
The Bowie, MD based company announced that it now expects to report full-year revenues in the range of $426 million to $428 million, down from prior range of $470 million to $490 million. The company also reduced its non-GAAP EPS forecast to between 32 cents and 33 cents, from the prior guidance of 39 cents to 46 cents.
The cutback in guidance was owing to the inability to enter into a collaboration agreement owing to unexpected material development in the concerned company. However, over the past nine months, Inovalon in anticipation of the agreement developed an application and negotiated an associated multiyear collaboration agreement pertaining to which execution and significant revenue recognition was expected in Dec 2016. The absence of any of the above led to the cutback in guidance.
Inovalon Holdings is a technology company which provides cloud-based data analytics and data-driven intervention platforms for the healthcare sector. The company operates through IT and Services group.
Zacks Rank & Key Picks
Currently, Inovalon has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector include NxStage Medical Inc. , Baxter International Inc. (BAX - Free Report) and Bovie Medical Corporation . NxStage Medical and Baxter International sport a Zacks Rank #1 (Strong Buy), while Bovie Medical carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NxStage Medical surged 33.9% over the last one year compared with the S&P 500’s 11.6% over the same period. The company has a four-quarter average positive earnings surprise of 46.3%.
Baxter International rallied 23.2% over the last one year, much higher than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 27%.
Bovie Medical recorded a 103.2% gain in the past one year, way better than the S&P 500. The company has a trailing four-quarter positive average earnings surprise of 28.7%.
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Inovalon (INOV) Cuts 2016 Revenue and Earnings Guidance
Leading provider of advanced cloud-based data analytics and data-driven intervention platforms to the healthcare industry, Inovalon Holdings (INOV - Free Report) , lowered its revenue and earnings guidance for full-year 2016.
The market did not react too kindly to this cutback in guidance as the stock fell 1.3% on Monday to finally close at $14.85. The stock represents a negative year-to-date return of almost 12.65% versus the Zacks categorized IT Services sub-industry’s positive return of 2.09%.
However, we are optimistic about continued advancements in Inovalon’s technology platforms, client base, expanding platform applicability, and sales pipeline. Also, a long-term expected earnings growth rate of 19.07% and a projected sales growth of 20.95% instill some confidence in its investors.
The Bowie, MD based company announced that it now expects to report full-year revenues in the range of $426 million to $428 million, down from prior range of $470 million to $490 million. The company also reduced its non-GAAP EPS forecast to between 32 cents and 33 cents, from the prior guidance of 39 cents to 46 cents.
The cutback in guidance was owing to the inability to enter into a collaboration agreement owing to unexpected material development in the concerned company. However, over the past nine months, Inovalon in anticipation of the agreement developed an application and negotiated an associated multiyear collaboration agreement pertaining to which execution and significant revenue recognition was expected in Dec 2016. The absence of any of the above led to the cutback in guidance.
Inovalon Holdings is a technology company which provides cloud-based data analytics and data-driven intervention platforms for the healthcare sector. The company operates through IT and Services group.
Zacks Rank & Key Picks
Currently, Inovalon has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector include NxStage Medical Inc. , Baxter International Inc. (BAX - Free Report) and Bovie Medical Corporation . NxStage Medical and Baxter International sport a Zacks Rank #1 (Strong Buy), while Bovie Medical carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NxStage Medical surged 33.9% over the last one year compared with the S&P 500’s 11.6% over the same period. The company has a four-quarter average positive earnings surprise of 46.3%.
Baxter International rallied 23.2% over the last one year, much higher than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 27%.
Bovie Medical recorded a 103.2% gain in the past one year, way better than the S&P 500. The company has a trailing four-quarter positive average earnings surprise of 28.7%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time? Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>