) reached 52-week high of $132.48 in mid-day trading last Friday
following its impressive third quarter results and a new deal
with Hospital Physician Partners ("HPP"). Shares of the company
closed at $130.83 on Oct 18, which represented a solid one-year
return of 63.4% and impressive year-to-date return of 73.4%.
ATHENAHEALTH IN (ATHN): Free Stock Analysis
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The medical information systems company has a market cap of $4.8
billion. Average volume of shares traded over the last three
months stood at approximately 406.7K.
Hospital Physician Partners - a privately-held medical management
and staffing firm - has selected ATHN's cloud-based services to
upgrade medical billing and patient communications. It is a
Hollywood, Fla. based company that provides patient care and
physician recruitment services to roughly 100 client hospitals in
HPP will deploy athenahealth's athenaCollector,
athenaCommunicator and athenaClarity services in order to
streamline collections, and improve patient communications and
system-wide business intelligence. It intends to treat more than
2 million patients in 2013.
athenaCollector is a revenue cycle management or (RCM) tool that
upgrades revenue streams and streamlines billing and insurance
reimbursements. On the other hand, cloud-based analytics service,
athenaClarity, helps health care providers with the metrics and
performance insight to efficiently manage business and patient
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
no other stocks from the medical information systems industry at
this moment other than
) with a Zacks Rank #2 (Buy), we view
Bio-Rad Laboratories, Inc.
INSYS Therapeutics, Inc.
) from the medical products industry as worth considering. Both
of them carry a Zacks Rank #1 (Strong Buy).