) reaffirmed its revenues, margins and earnings guidance for 2013
and released its 2014 guidance where it anticipates higher
revenues but lower earnings per share.
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For 2013, the leading Electronic Health Record (EHR) provider
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 compensation.
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.
Following the announcement, athenahealth's shares slipped 3.2% to
$126.60 on Dec 12 but regained 3.7% to $131.31, after the market
closed last Friday. The regain can be attributable to optimism
triggered by ramp up of its enterprise accounts and successful
implementation of Meaningful Use Stage 2 (MU2) criteria across
its cloud-based network in the U.S.
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.
Hill-Rom Holdings, Inc.
). While Bio-Rad Laboratories and Hill-Rom Holdings carry a Zacks
Rank #1 (Strong Buy), Advaxis carries a Zacks Rank #2 (Buy).