athenahealth, Inc. ATHN recently reiterated its financial guidance for 2015 and also announced estimations for fiscal 2016.
The company maintained its total revenue projection at or above the midpoint of the $905–$925 million range. Adjusted EPS (excluding stock-based compensation) is expected to be above the high-end of the $1.10 to $1.20 band.
For 2015, adjusted gross margin (excluding stock-based compensation) is expected to be close to the high end of the range of 62.5%–63.5%, while adjusted operating income (excluding stock-based compensation) is expected to be above the high end of the $75–$85 million range.
For 2016, athenahealth expects total revenue in the band of $1.09–$1.12 billion. Meanwhile, adjusted EPS (excluding stock-based compensation) is estimated between $1.65 and $1.85.
Adjusted gross margin (excluding stock-based compensation) is projected in the range of 63.5%–64.5%, while adjusted operating income (excluding stock-based compensation) is likely to be in the band of $120–$135 million. Adjusted tax rate for both 2015 and 2016 are pegged at 40%.
In 2016, athenahealth plans to continue to invest in sales and marketing in order to boost bookings. The company aims to efficiently expand its business operations and improve its gross margin base.
athenahealth reported stellar third-quarter 2015 results in which the company beat both top and bottom-line expectations. We believe the company’s expanding physician base will continue to drive revenues, going forward. Moreover, the company’s recognition as leader in interoperability is expected to bode well for its business model and allure customers.
Zacks Rank & Other Stocks to Consider
Currently, athenahealth carries a Zacks Rank #2 (Buy). Other favorably ranked stocks in the medical sector are Masimo MASI, Natus Medical BABY and Olympus Corp OCPNY. All the stocks sport a Zacks Rank #1 (Strong Buy).
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