Athenahealth's 2Q Results: Postgame Scorecard

FOXBusiness

Athenahealth (ATHN) announced its results for the most recent quarter on July 19, 2012.

Earnings and Revenue The company posted revenues in line with analyst predictions, though the company's EPS came up short of expectations. The company reported EPS of 11 cents a share versus the 16 cents a share estimate and revenues of $103.5 million versus the $103.7 million estimate.

Continue Reading Below

The company's net income for the quarter fell 19.9% to $4.2 million. Revenue climbed 32.9% from $77.9 million in the same period last year.

Company Fundamental Trends Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 25.3% in the first quarter and 27% in the fourth quarter of the last fiscal year. The company has averaged revenue growth of 34% over the past five quarters.

History Against Expectations The company missed estimates last quarter after meeting expectations the quarter before. It reported net income of 8 cents.

Official Comment: "I am very pleased with our execution so far this year and our continued focus on becoming medical care givers most trusted service," said Jonathan Bush, the Company's Chairman and Chief Executive Officer. "Be it confirmation of the Affordable Care Act or the results of our third annual Physician Sentiment Index, all evidence suggests that cloud-based services are on the right side of history. The athenahealth team understands the growing cost of care coordination placed on medical care givers today and remains focused on improving that experience in a sustainable way. During the past quarter, we brought athenaNet mobile with the launch of our iPhone application, expanded our service offerings to include credentialing and eligibility denials, and expanded our client training and support through the athenaCare service. By listening to our clients and understanding their concerns, athenahealth will remain better equipped to help our clients manage change while improving their financial and operational performance regardless of how their services are paid for."

Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.