Why Athenahealth Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Athenahealth (NAS: ATHN) popped by as much as 12% after the company reported a solid second quarter earnings release.
So what: Revenue grew by a third, to $103.5 million, turning into an adjusted profit of $0.24 per share once it reached the bottom line. The figures were mostly in line with analyst expectations, but obviously were enough to send investors cheering.
Now what: CEO Jonathan Bush said the results confirm the company's approach to cloud-based services in healthcare, doing its part to try and help bring medical costs down and improve the healthcare experience. The Street's not entirely convinced, as UBS is bearish on Athenahealth with a "sell" rating and $58 price target. The brokerage agrees that the results were solid, but doesn't agree with the company's current valuation multiples.
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The article Why Athenahealth Popped originally appeared on Fool.com.Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Athena Health. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.