Leerink Swann Downgrades Quality Systems (QSII) to Market Perform; Cutting Estimates on Contract Decline
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Price: $22.35 --0%
Rating Summary:
4 Buy, 15 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
4 Buy, 15 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Leerink Swann downgraded Quality Systems (NASDAQ: QSII) from Outperform to Market Perform, price target lowered from $45-47 range to $31.
Analyst, David Larsen, said, "On the call management highlighted that the number of signed contracts declined to 75 from 128 last quarter, the percentage of greenfield deals declined to 70% from ~90%, and based on MEDACorp survey work, the remaining available market for EMR sales may be well below Quality Systems' expectations. We also believe that incremental revenue tied to Stages 2 and 3, as well as other Health Reform initiatives, will be well below the incremental dollars generated from Stage 1. Given these concerns about the market, we downgrade shares."
"Our F2013E revenue of $507MM (+18% y/y) is well below guidance of $516-$537MM. We also reduce our F2013E and F2014E EPS by $0.20 to $1.55 (+21% y/y) and $0.35 to $1.80 (+17% y/y), respectively."
For an analyst ratings summary and ratings history on Quality Systems click here. For more ratings news on Quality Systems click here.
Shares of Quality Systems closed at $30.01 yesterday.
Analyst, David Larsen, said, "On the call management highlighted that the number of signed contracts declined to 75 from 128 last quarter, the percentage of greenfield deals declined to 70% from ~90%, and based on MEDACorp survey work, the remaining available market for EMR sales may be well below Quality Systems' expectations. We also believe that incremental revenue tied to Stages 2 and 3, as well as other Health Reform initiatives, will be well below the incremental dollars generated from Stage 1. Given these concerns about the market, we downgrade shares."
"Our F2013E revenue of $507MM (+18% y/y) is well below guidance of $516-$537MM. We also reduce our F2013E and F2014E EPS by $0.20 to $1.55 (+21% y/y) and $0.35 to $1.80 (+17% y/y), respectively."
For an analyst ratings summary and ratings history on Quality Systems click here. For more ratings news on Quality Systems click here.
Shares of Quality Systems closed at $30.01 yesterday.
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