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athenahealth (ATHN) Misses on Earnings & Revenues in Q1
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athenahealth Inc. reported adjusted earnings of 10 cents per share in the first quarter of fiscal 2017, which missed the Zacks Consensus Estimate by a penny. In fact, the figure declined almost 9% on a year-over-year basis.
The Watertown, MA-based maker of billing and medical practice management software posted revenues of $285.4 million, which also missed the Zacks Consensus Estimate of $297 million but increased 11.3% on a year-over-year basis.
Quarter Highlights & Margin Details
athenahealth reported Business and Services revenues of $278.3 million, up 12.4% from the year-ago quarter. However, implementation and other segment posted revenues of $7.1 million, down 17.4% from the same quarter last year.
A strong client base has been a major growth driver for the company. Adjusted gross margin in the first quarter was 61.7% of net revenues, compared to 62.0% a year ago.
Coming to operating margins, the company registered a margin of 7.7% of total revenue in the first quarter, compared to 9.4% in the year-ago quarter.
We believe applications like athenaClinicals, athenaClinicals-Streamlined, athenaInsight, athenaCommunicator, athenaOne, athenaCollector for Hospital and Health Systems and the brand promise of ‘Unbreak Healthcare’ are fortifying its market position in terms of exclusiveness of services provided in the respective markets.
Per management, the company expanded its network across ambulatory, hospital and population health platforms. The company’s network has grown to over 99,000 providers, 88 million patient records, and 2.8 million covered lives at the end of first quarter. Buoyed by stellar network expansion, the company is expected to drive long-term revenue and earnings growth over the long haul.
athenahealth, Inc. Price, Consensus and EPS Surprise
athenahealth posted a disappointing performance on a year-to-date basis. Shares decreased roughly 4.4%, comparing unfavorably with the Zacks categorized Medical Information Systems sub-industry’s addition of almost 19.2%. Moreover, the current level is way lower than the S&P 500’s return of 8.1% over the same time frame.
However, the estimate revision for the stock has been favorable. The Zacks Consensus estimate for the full year inched up 0.8% to $1.19 over the last two months.
athenahealth has a Zacks Rank #3 (Hold).
Guidance
For fiscal 2017, the company expects revenues in the band of $1,210–$1,250 million.
Adjusted operating income is projected in the range of $120–$140 million.
Annual bookings for the fiscal are expected at around $350–$400 million.
Inogen has a long-term expected earnings growth rate of 17.50%. The stock represents an impressive one-year return of 71.3%.
Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 15.5%.
Sunshine Heart posted a positive earnings surprise of 58.24% in the last reported quarter. The stock recorded a stellar EPS growth rate (last 3–5 years of actual earnings) of almost 22%.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
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athenahealth (ATHN) Misses on Earnings & Revenues in Q1
athenahealth Inc. reported adjusted earnings of 10 cents per share in the first quarter of fiscal 2017, which missed the Zacks Consensus Estimate by a penny. In fact, the figure declined almost 9% on a year-over-year basis.
The Watertown, MA-based maker of billing and medical practice management software posted revenues of $285.4 million, which also missed the Zacks Consensus Estimate of $297 million but increased 11.3% on a year-over-year basis.
Quarter Highlights & Margin Details
athenahealth reported Business and Services revenues of $278.3 million, up 12.4% from the year-ago quarter. However, implementation and other segment posted revenues of $7.1 million, down 17.4% from the same quarter last year.
A strong client base has been a major growth driver for the company. Adjusted gross margin in the first quarter was 61.7% of net revenues, compared to 62.0% a year ago.
Coming to operating margins, the company registered a margin of 7.7% of total revenue in the first quarter, compared to 9.4% in the year-ago quarter.
We believe applications like athenaClinicals, athenaClinicals-Streamlined, athenaInsight, athenaCommunicator, athenaOne, athenaCollector for Hospital and Health Systems and the brand promise of ‘Unbreak Healthcare’ are fortifying its market position in terms of exclusiveness of services provided in the respective markets.
Per management, the company expanded its network across ambulatory, hospital and population health platforms. The company’s network has grown to over 99,000 providers, 88 million patient records, and 2.8 million covered lives at the end of first quarter. Buoyed by stellar network expansion, the company is expected to drive long-term revenue and earnings growth over the long haul.
athenahealth, Inc. Price, Consensus and EPS Surprise
athenahealth, Inc. Price, Consensus and EPS Surprise | athenahealth, Inc. Quote
Stock Price & Estimate Revision Trend
athenahealth posted a disappointing performance on a year-to-date basis. Shares decreased roughly 4.4%, comparing unfavorably with the Zacks categorized Medical Information Systems sub-industry’s addition of almost 19.2%. Moreover, the current level is way lower than the S&P 500’s return of 8.1% over the same time frame.
However, the estimate revision for the stock has been favorable. The Zacks Consensus estimate for the full year inched up 0.8% to $1.19 over the last two months.
athenahealth has a Zacks Rank #3 (Hold).
Guidance
For fiscal 2017, the company expects revenues in the band of $1,210–$1,250 million.
Adjusted operating income is projected in the range of $120–$140 million.
Annual bookings for the fiscal are expected at around $350–$400 million.
Key Picks
Better-ranked stocks in the broader medical sector include Inogen Inc. (INGN - Free Report) , Hologic, Inc. (HOLX - Free Report) and Sunshine Heart Inc . Notably, all the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.50%. The stock represents an impressive one-year return of 71.3%.
Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 15.5%.
Sunshine Heart posted a positive earnings surprise of 58.24% in the last reported quarter. The stock recorded a stellar EPS growth rate (last 3–5 years of actual earnings) of almost 22%.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>