Shares of Quality Systems Inc. (NASDAQ:NXGN) jumped on Friday following the company's fiscal fourth-quarter report. The provider of software and services to the healthcare industry beat analyst estimates on all fronts. The stock was up 13% at market close.
Quality Systems reported fourth-quarter revenue of $135.8 million, up 2.6% year over year and about $3.8 million higher than the average analyst estimate. Software, hardware, and related revenue increased slightly year over year, while support and maintenance revenue declined slightly. The strongest performance came from the professional services segment, with revenue jumping 59% to $10.8 million.
Non-GAAP earnings per share came in at $0.16, down from $0.21 in the prior-year period but $0.03 better than analysts were expecting. A big jump in selling, general, and administrative expenses pushed down the bottom line.
"The successes we've seen over the course of fiscal 2018, particularly the sales performance during the fourth quarter, maintains our confidence in our long-term targets," said Quality Systems CEO Rusty Frantz.
Quality Systems expects to produce revenue between $532 million and $548 million in fiscal 2019, compared to $531 million in fiscal 2018. Non-GAAP EPS is expected between $0.70 and $0.78, up from $0.70 in 2018.
Revenue growth is sluggish, and its earnings moved in the wrong direction in the fourth quarter. But with the stock still down about 66% since peaking in late 2011, a better-than-anticipated quarter was all it took to send the stock soaring.