HealthStream Beat On Q2 Earnings Estimates, But Profits, Margins Hit By Higher Expenses

HealthStream Inc HSTM posted Q2 EPS of $0.08, beating the $(0.03) consensus but fell 27% Y/Y.
Sales increased 7% Y/Y to $64.8 million, surpassing the consensus of $61.8 million.
Revenues from the Workforce Solutions segment were $52.2 million, increasing 7% Y/Y. Sales from recent acquisitions and growth in other solutions more than offset the lost legacy resuscitation revenues.
Revenues from the Provider Solutions segment were $12.7 million compared to $11.7 million a year ago, primarily attributable to subscription revenues.
Operating margin contracted from 7.1% to 5.3% due to higher operating expenses and amortization, primarily associated with businesses acquired over the past year.
Net income fell 29% to $2.4 million, while adjusted EBITDA improved from $12.1 million to $14.5 million. The cash balance stood at $55.1 million.
FY21 Guidance: HealthStream raised its sales guidance to $253 million - $257 million from $245 million to 255 million, higher than the $251.3 million consensus.
It expects adjusted EBITDA of $48 million - $50 million, compared to the earlier outlook of $40 million - $44 million.
Price Action: HSTM shares closed at $29.43 on Monday.

Momentum86.11

Growth70.87

Quality78.70

Value22.49

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