Shares of cloud-based analytics company Inovalon Holdings (NASDAQ: INOV) increased as much as 20% on Thursday following the company's third-quarter earnings release. The gain, however, has pulled back slightly. Shares are up about 12% at the time of this writing.
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Inovalon reported third-quarter revenue and adjusted earnings per share (EPS) of $105 million and $0.10, respectively. The stock's gain on Thursday is likely because these results landed ahead of analyst expectations. On average, analysts were expecting revenue and adjusted EPS of $103 million and $0.06, respectively, according to data compiled by Thomson Reuters.
CEO Keith Dunleavy seemed pleased with the results. He said:
Looking ahead, Inovalon importantly reaffirmed the company's full-year guidance, which calls for revenue in the range of $470 million to $490 million and adjusted EPS of $0.28 to $0.35.
It's also worth noting that, going forward, the company will have a new chief financial and operating officer. Inovalon promoted Chris Greiner to the role and announced that Tom Kloster has stepped down from the CFO position "to pursue other opportunities."
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