Leerink Partners Raises Price Target on Quality Systems (QSII) Following 7c EPS Beat

Leerink Partners reiterated a Market Perform rating on Quality Systems (NASDAQ: QSII), and raised the price target to $15.00 (from $14.00), following the company''s 2Q15 earnings results. QSII reported revenue of $125.4M, roughly in-line with consensus of $124.8M. Adjusted EPS of $0.21 was well ahead of consensus of $0.14.

Analyst David Larsen commented, "This afternoon QSII reported F2Q:16 results, and while total revenue of $125.4M (+4.0% y/y) was roughly in-line with our estimate (of $125.2M) and consensus (of $124.8M), adjusted EPS of $0.21 (+66.9% y/y) was well ahead of our estimate (of $0.15) and consensus (of $0.14). QSII also announced the sale of its hospital segment, and under the new leadership of Rusty Franz as CEO, we believe QSII is taking the right steps to focus on its core ambulatory business. We are encouraged that bookings returned to normal levels and there appears to be some stabilization across QSII's business segments, although the EPS beat was largely due to SG&A timing benefits. The launch of QSII's NG Now cloud based EHR platform was delayed until C2017 which is a negative, and we remain cautious in the near-term as QSII continues its CFO search and works to re-position the company for growth. Maintain MP, PT to $15 from $14."

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 $12.86 yesterday.

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