Athenahealth ATHN reported a solid headline result with revenues of $69.9 mil, including a ~$1.1 mil benefit of one extra day in 1Q11. Non-GAAP 1Q11 EPS of $0.17, which came in line with Morgan Stanley's estimates, but above consensus benefited from less physician implementations in the quarter, and a lower tax rate.
Athenahealth is on pace to reach $314 million of revenues, on the upper end of management's guidance of $300 to $315 million and versus consensus of $311 million, and $0.77 of non-GAAP EPS versus guidance range of $0.68 to $0.78 and consensus $0.79. Of note, the non-GAAP EPS includes ~$0.33 of share comp add-back.
Sales and marketing expenses now have out-grown revenues for ten straight quarters. Moreover, S&M spending, as a percent of NTM revenues, has steadily increased to an estimated 17.0% in 1Q11, from 15.0% in 1Q10 and from 12.5% in 1Q09. ATHN's ability to show follow thru revenues is a key focus area in the coming quarters.
Morgan Stanley has an Underweight rating on ATHN
ATHN closed Friday at $46.21
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in