) revealed that it has entered a strategic partnership with
healthcare technology solutions provider
Merge Healthcare Incorporated
) to improve its electronic health record (EHR) services.
ATHENAHEALTH IN (ATHN): Free Stock Analysis
BIO-RAD LABS -A (BIO): Free Stock Analysis
MERGE HEALTHCAR (MRGE): Free Stock Analysis
NUVASIVE INC (NUVA): Free Stock Analysis
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ATHN will use MRGE's iConnect Network in its cloud-based platform
that will help its clients have real time access to view exam
results, diagnostic images and other critical information within
the athenaClinicals EHR workflow. Following the announcement,
athenahealth's shares rose 1.0% yesterday.
The integration of iConnect Network into EHR workflow will
improve communication between physicians and radiologists and
reduce healthcare costs. It will also help healthcare providers
to attest and receive incentives speedily and cost-effectively.
A few days back, athenahealth reaffirmed its revenues, margins
and earnings guidance for 2013 and released its 2014 guidance
where it anticipates higher revenues but lower earnings per
share. For 2013, the company continues to expect revenues between
$580 million and $615 million, adjusted gross margin between 63
and 64%, adjusted operating income between $68 and $80 million,
and adjusted earnings per share between $1.05 and $1.15. The
adjusted figures exclude non-recurring items and stock-based
For 2014, ATHN expects revenues between $725 million and $755
million, adjusted gross margin between 62.5 and 63.5%, adjusted
operating income between $70 and $80 million, and adjusted
earnings per share between 98 cents and $1.10.
athenahealth reported adjusted earnings of $8.0 million or 21
cents per share (excluding amortization and integration and
transaction costs) in the third quarter of the year, exceeding
the Zacks Consensus Estimate of 15 cents per share. This
translated into a 15.5% rise in net earnings from $7.0 million
and 10.5% rise in earnings per share from 19 cents in the
comparable quarter a year ago.
Revenues in the quarter surged 43.1% to $151.5 million but missed
the Zacks Consensus Estimate of $155 million. Excluding Epocrates
and other revenues (consisting of third-party tenant revenues)
totaling $17.2 million, core athenahealth revenues rose 27% to
$134.3 million. Growth was led by expanded clientele for the
company's offerings since the acquisition of Healthcare Data
Services and strong athenaCoordinator business.
Currently, ATHN carries a Zacks Rank #3 (Hold). While we prefer
none of the stocks from the medical information systems industry
at this moment, we can consider some better-ranked stocks from
the medical products industry such as
Bio-Rad Laboratories, Inc.
). Both of them carry a Zacks Rank #1 (Strong Buy).