Athenahealth FY16 Earnings Outlook Tops View; Reaffirms 2015 Outlook

(RTTNews) - Athenahealth Inc. (ATHN), which provides cloud-based systems and apps for medical practices, announced that it expects 2016 earnings that beat Wall Street expectations and reaffirms 2015 outlook.

For next year, Athenahealth projected Non-GAAP adjusted net income per share in range of$1.65 to $1.85 on revenue of between $1.085 billion and $1.115 billion. Analysts polled by Thomson Reuters estimated earnings of $1.58 per share on revenues of $1.13 billion for 2016. Analysts' estimates typically exclude special items.

The company reaffirmed fiscal 2015 GAAP total revenue to be at or above the mid-point of the $905 million to $925 million guidance range. Non-GAAP adjusted net income per share is expected to be above the high end of the $1.10 to $1.20 guidance range while non-GAAP adjusted operating income to be above the high end of the $75 million to $85 million guidance range. Analysts expect earnings of $1.32 per share on revenues of $925.0 million.

Further, Athenahealth said its planned to continue to scale its operations and improve Non-GAAP Adjusted Gross Margin. The company also planned to continue to invest in sales and marketing and in research and development for marketing efforts.

The Watertown, Massachusetts based company plans to provide further details about its financial plan for next year during the investor meeting set for Thursday at 8:30 a.m. New York time.

ATHN closed Wednesday trading at $160.80, down $0.77 or 0.48%. In after hours, the stock gained $0.95 or 0.59%.