Can Athenahealth Meet These Numbers?

Athenahealth (Nasdaq: ATHN  ) is expected to report Q1 earnings on May 2. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Athenahealth's revenues will increase 25.4% and EPS will grow 64.3%.

The average estimate for revenue is $121.1 million. On the bottom line, the average EPS estimate is $0.23.

Revenue details
Last quarter, Athenahealth reported revenue of $116.3 million. GAAP reported sales were 26% higher than the prior-year quarter's $92.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.29. GAAP EPS of $0.15 were the same as the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 61.1%, 130 basis points worse than the prior-year quarter. Operating margin was 10.9%, 10 basis points worse than the prior-year quarter. Net margin was 5.1%, 70 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $542.0 million. The average EPS estimate is $1.22.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 191 members out of 249 rating the stock outperform, and 58 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Athenahealth a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Athenahealth is hold, with an average price target of $79.18.

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