athenahealth (Nasdaq: ATHN ) reported earnings on Feb. 15. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), athenahealth met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
athenahealth recorded revenue of $92.5 million. The 20 analysts polled by S&P Capital IQ predicted revenue of $92.5 million on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $69.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.24. The six earnings estimates compiled by S&P Capital IQ predicted $0.23 per share on the same basis. GAAP EPS of $0.15 for Q4 were 29% lower than the prior-year quarter's $0.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.4%, 240 basis points worse than the prior-year quarter. Operating margin was 10.1%, 800 basis points worse than the prior-year quarter. Net margin was 5.8%, 470 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $93.5 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $425.5 million. The average EPS estimate is $0.98.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 177 members out of 224 rating the stock outperform, and 47 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give athenahealth a green thumbs-up, and 18 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on athenahealth is hold, with an average price target of $54.53.
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