The healthcare software company Athenahealth Inc. (ATHN) reported a 65% jump in earnings for the third quarter helped by higher revenue and lower operating expenses. Total revenues increased 9% to $331.4 million driven by higher network growth in ambulatory and in hospital. In addition, the company reaffirmed its full-year guidance.
Ahead of the impact of the new revenue recognition standard, net income climbed 65% to $21.5 million and earnings jumped 62.5% to $0.52 per share. Non-GAAP earnings soared 71% to $0.96 per share.
Total bookings for the quarter decreased to $46.6 million from $65.7 million in the previous year quarter. The latest quarter bookings included a large enterprise client chargeback originally signed in 2016. Excluding this chargeback, the decline in bookings year-over-year was consistent with the prior quarter.
Looking ahead into the full year 2018, the company reaffirmed its total revenue outlook in the range of $1.33 billion to $1.36 billion and operating income estimate in the range of $128 million to $155 million. Operating margin is still predicted to be 9.6% to 11.4%.
The forecast is prior to the impact of the new revenue recognition standard to allow for comparability against historical results. The company reaffirmed its full-year financial guidance to reflect its year-to-date performance and expectations for the fourth quarter.
For the third quarter, network growth metrics for ambulatory (athenaOne) increased 13% for collector providers, 17% for clinical providers and 16% for communicator providers. The metrics for the hospital (athenaOne for Hospitals & Health Systems) soared 101% for discharge bed days. However, population health (athenahealth Population Health) services experienced a 5% drop in network metrics for covered lives.
Shares of Athenahealth ended Friday’s regular session down 3.63% at $120.35 on the Nasdaq. The stock has fallen over 6% in the year so far, while it has risen 0.42% in the past year.
Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text.
Most Popular
Costco (COST) reports strong growth in Q1 FY26 earnings; revenue up 8%
Costco Wholesale Corporation (NASDAQ: COST) has reported an increase in net income for the first quarter of fiscal 2026. Revenues grew 8.3% year-over-year. The Issaquah, Washington-headquartered warehouse giant’s total revenues
AVGO Earnings: Broadcom reports higher Q4 FY25 revenue, profit; results beat
Semiconductor company Broadcom, Inc. (NASDAQ: AVGO) on Thursday reported an increase in revenue and adjusted earnings for the fourth quarter of fiscal 2025. The numbers also surpassed analysts' expectations. Adjusted
Lamb Weston (LW) is set to report Q2 2026 earnings next week, here’s what to look for
Shares of Lamb Weston Holdings, Inc. (NYSE: LW) rose over 1% on Thursday. The stock has gained 4% over the past three months. The French fry giant is slated to
