athenahealth Misses, Sees Q1 Loss - Analyst Blog

By
A A A

athenahealth Inc. ( ATHN ) posted adjusted loss of $3.0 million or 8 cents per share in the first quarter of 2014 in stark contrast to earnings of $6.0 million or 16 cents per share in the same quarter of 2013. The loss per share was broader than the Zacks Consensus Estimate of a loss of a penny for the quarter.

Reported loss was $8.1 million, or 21 cents per share compared with earnings of $0.7 million, or 2 cents per share, in the first quarter of 2013.

Revenues in the quarter rose 29.8% to $163.0 million but lagged the Zacks Consensus Estimate of $170 million. Excluding the Epocrates and other revenues (consisting of third-party tenant revenues) totaling $14.8 million, core athenahealth revenues rose 23% to $148.2 million in the quarter.

On a segment-wise basis, revenues from Business Services rose 26.8% year over year to $154.5 million while Implementation and Other revenues more than doubled to $8.5 million from $4.1 million in the first quarter of 2013.

Adjusted gross profits escalated 27.9% to $94.8 million but adjusted gross margin fell 80 basis points to 58.2% from 59.0% in the 2012-quarter. Adjusted operating loss was $3.6 million or 2.2% of sales in the quarter versus $4.3 million or 3.4% of sales in the prior-year quarter.

Financial Position

athenahealth had cash and cash equivalents of $51.3 million as of Mar 31, 2014, significantly down from $65.0 million as of Dec 31, 2013. Long-term debt stood at $185.0 million as of Mar 31, 2014 compared with $188.75 million as of Dec 31, 2013.

In the quarter, cash flow from operating activities was $14.1 million compared with an outflow of $5.5 million in the first quarter of 2013. Capital expenditure dipped 51.6% to $5.3 million from $11.0 million in 2013-quarter.

Zacks Rank

Currently, athenahealth carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimates for 2014 revenues and earnings per share stand at $752 million and 33 cents.

Some better-ranked stocks in the medical products industry at this moment include Enzymotec Ltd. ( ENZY ), Edwards Lifesciences Corp. ( EW ), and St. Jude Medical Inc. ( STJ ). Enzymotec sports a Zacks Rank #1 (Strong Buy), while both Edwards Lifesciences Corp. and St. Jude Medical retain a Zacks Rank #2 (Buy).



ATHENAHEALTH IN (ATHN): Free Stock Analysis Report

ENZYMOTEC LTD (ENZY): Free Stock Analysis Report

EDWARDS LIFESCI (EW): Free Stock Analysis Report

ST JUDE MEDICAL (STJ): Free Stock Analysis Report

To read this article on Zacks.com click here.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ATHN , ENZY , EW , STJ

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

139,392,686
  • $5.41 ▼ 18.52%
108,086,733
  • $17.04 ▲ 1.61%
88,411,032
  • $42.085 ▼ 1.19%
35,897,863
  • $101.79 ▲ 0.21%
34,635,836
  • $46.68 ▲ 0.34%
31,162,075
  • $4.36 ▲ 12.37%
31,086,421
  • $26.21 ▲ 0.61%
30,930,862
  • $17.09 ▼ 2.95%
As of 9/18/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com