FBR Capital Cuts Price Target on Athenahealth (ATHN) Following 2Q Miss

FBR Capital reiterated a Market Perform rating on Athenahealth (NASDAQ: ATHN), and cut the price target to $140.00 (from $145.00), following the company's 2Q earnings report. Revenue was $262 million, below the consensus of $274 million. Non-GAAP adjusted EPS was $0.34, compared with the consensus of $0.42.

Analyst Steven Halper commented, "After the close on Thursday, July 21, ATHN reported 2Q16 results which were below expectations. Revenue was $262 million, below our estimate of $278 million and consensus of $274 million. The number of physicians using athenaCollector added in the quarter was below consensus estimates. Non-GAAP adjusted EPS were $0.34, compared with our estimate of $0.40 and consensus of $0.42. Gross profit and gross margin were below our estimate given the revenue shortfall. Despite the EPS miss, the company indicated that 2016 results were pointing to the mid-point or above their respective guidance ranges. It is not yet clear why revenue and physician adds were below our estimate. Given elevated investor expectations, the shares traded significantly lower after the market close. Our price target declines slightly from $145 to $140, which is about 17% above the last trade on Thursday evening. Our rating on the shares remains at Market Perform."

For an analyst ratings summary and ratings history on athenahealth click here. For more ratings news on athenahealth click here.

Shares of athenahealth closed at $137.20 yesterday.

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