athenahealth
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), athenahealth missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased.
Margins dropped across the board.
Revenue details
athenahealth notched revenue of $105.9 million. The 16 analysts polled by S&P Capital IQ looked for revenue of $109.1 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $83.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.30. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.26 per share. GAAP EPS of $0.17 for Q3 were 13% higher than the prior-year quarter's $0.15 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 60.5%, 170 basis points worse than the prior-year quarter. Operating margin was 10.5%, 50 basis points worse than the prior-year quarter. Net margin was 5.9%, 40 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $119.8 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $429.6 million. The average EPS estimate is $0.99.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 185 members out of 241 rating the stock outperform, and 56 members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give athenahealth a green thumbs-up, and 16 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 $83.73.
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