Seeking Alpha

Barron's pans athenahealth after weak guidance

  • "Investors will eventually tire of paying 100 times flat earnings," Bill Alpert says, referencing the multiple the market is assigning to shares of athenahealth (ATHN).
  • Barron's is skeptical of ATHN after the company guided below expectations for both 2014 revenue and EPS.
  • "All year, the financial models of bulls like Piper's Sean Wieland were clearly applying a 30% growth expectation to their forecasts for ATHN revenue, not bookings," Alpert notes.
  • Barron's seems to suggest that perhaps the company should have corrected what it allegedly knew were mistaken assumptions on the part of the sell-side: "The company waited until last week to tell Wall Street it was applying the 30% growth rate to the wrong number," Alpert writes.
  • The piece also suggests ATHN may have an exceptionally difficult time breaking Cerner (CERN) and Epic's stranglehold on the hospital enterprise software market.
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Comments (1)
  • User 14474942
    , contributor
    Comment (1) | Send Message
    Agreed a 100%. Market has been way too forgiving on this stock. There will be a 40% correction in near future.
    16 Dec 2013, 01:31 AM Reply Like
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