Company Update (NASDAQ:ATHN): athenahealth, Inc Shares Jump as Guidance Tops Expectations


athenahealth, Inc (NASDAQ:ATHN) investors have a smile on their faces Thursday morning, after the company issued 2017 guidance that was above consensus expectations. On revenue, $1.29-$1.33 billion (+17-21% over 2016 mid-point) straddles consensus estimate of $1.29 billion.

athenahealth shares reacted to the positive news, jumping over 26% to $119.13.

“We are a growth company and we continue to see expansive market opportunities for our network-enabled services. As we look towards 2017, we will be focused on further evolving our platform and further extending our technology assets so we can go deeper with our core services and broader with our network services,” said Karl Stubelis, chief financial officer, athenahealth. “As has been our approach in the past, we will measure our success in 2017 by our corporate balanced scorecard which includes stability, performance, client satisfaction, and financial metrics that we believe best reflect how we are progressing against our long-term vision of building the healthcare internet. We are also a financially disciplined company and we look forward to presenting our financial plan for fiscal year 2017 at our Ninth Annual Investor Summit tomorrow.”

On the ratings front, Athenahealth has been the subject of a number of recent research reports. In a report released yesterday, Oppenheimer analyst Mohan Naidu reiterated a Buy rating on ATHN, with a price target of $144, which implies an upside of 23% from current levels. Separately, on December 12, Jefferies’ Sean Dodge maintained a Sell rating on the stock.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Mohan Naidu and Sean Dodge have a yearly average loss of 1.1% and 5.6% respectively. Naidu has a success rate of 46% and is ranked #3353 out of 4274 analysts, while Dodge has a success rate of 32% and is ranked #3738.

Overall, 2 research analysts have rated the stock with a Sell rating, 5 research analysts have assigned a Hold rating and 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $127.00 which is 8.4% above where the stock opened today.

athenahealth, Inc. provides cloud-based business services and mobile applications for medical groups and health systems. It also provides ongoing billing, clinical-related, and other related services to customers. The company offers practice management and electronic health record services. Its service offerings are based on proprietary web-native practice management and electronic health record software, which offer payer knowledge-base and integrated back-office service operations and care coordination services. The company’s cloud-based software offers four integrated offerings through athenaNet; athenaCollector for revenue cycle management; athenaClinicals for clinical cycle management; athenaCommunicator for patient cycle management; and athenaCoordinator for referral cycle management.