Athenahealth Earnings: Fifth Consecutive Quarter of Double-Digit Revenue Growth
athenahealth, Inc. (NASDAQ:ATHN) reported net income above Wall Street’s expectations for the most recent quarter.
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athenahealth Earnings Cheat Sheet for the Third Quarter
Results: Net income for athenahealth, Inc. rose to $6.2 million (17 cents per share) vs. $5.3 million (15 cents per share) in the same quarter a year earlier. This marks a rise of 17.6% from the year-earlier quarter.
Revenue: Rose 26.4% to $105.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: athenahealth, Inc. beat the mean analyst estimate of 16 cents per share. It beat the average revenue estimate of $103.7 million.
Quoting Management: “We are well into our pivot towards the world of coordinating care, accountable care organizations, and global risk. I believe that athenahealth’s DNA is ideal for this world and that we will prosper more than ever if it continues to rise,” said Jonathan Bush, the Company’s Chairman and Chief Executive Officer. “In Q3 2012, we delivered against many of our client-centric metrics, the purest indicators of the value clients place on our services, and we did this while investing in the future.”
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 32.7%, with the biggest boost coming in the first quarter when revenue rose 38.1% from the year earlier quarter.
Last quarter’s profit increase breaks a three-quarter run of year-over-year profit decreases. In the second quarter, net income fell 19.9% from the year earlier, while the figure dropped 25.3% in the first quarter and 27% in the fourth quarter of the last fiscal year.
The company beat estimates last quarter after being in line with expectations in the second quarter with net income of 8 cents per share.
Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from 19 cents per share to 18 cents. For the fiscal year, the average estimate has moved up from 62 cents a share to 67 cents over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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