The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Athenahealth met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Margins shrank across the board.
Athenahealth reported revenue of $116.3 million. The 16 analysts polled by S&P Capital IQ looked for revenue of $117.0 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $92.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.29. The 18 earnings estimates compiled by S&P Capital IQ averaged $0.28 per share. GAAP EPS of $0.16 for Q4 were 6.7% 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.
For the quarter, gross margin was 61.1%, 130 basis points worse than the prior-year quarter. Operating margin was 10.0%, 10 basis points worse than the prior-year quarter. Net margin was 5.1%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $122.3 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $542.8 million. The average EPS estimate is $1.22.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 191 members out of 243 rating the stock outperform, and 52 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 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 $79.18.
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