athenahealth's (ATHN) Mixed Guidance Leaves PT Unchanged - FBR

FBR Analyst Stephen Halper commented on athenahealth (NASDAQ: ATHN) revised guidance in a note this morning. Athenahealth provided its initial 2016 outlook ahead of its annual investor meeting on Thursday. Revenue guidance was below our estimate, while adjusted EPS were nicely above. GAAP revenue is expected to be $1.085 billion to $1.115 billion; consensus stood at $1.129 billion. Some slowdown in revenue growth should be expected as the law of large numbers sets in. However, investor expectations are probably higher for ATHN.

2015 was a mixed year from an income statement perspective with revenue expected to grow 23% and EPS slightly below 2015 levels. Earnings in 2H15 are likely to be significantly better than 1H15 earnings.

Adjusted EPS remains at $1.25, at the high end of the guidance range of $1.10 to $1.25. The lower than expected revenue and greater margin leverage offset each other so the PT remains at $135. No change to the marketperform rating either.

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 $160.80 yesterday.

You May Also Be Interested In

• TechnipFMC (FTI) Tops Q1 EPS by 6c, provides guidance
• Altisource Asset Management Corp (ASPS) Tops Q1 EPS by 24c
• Northfield Bancorp (NFBK) Reports In-Line Q1 EPS