- "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.
Barron's pans athenahealth after weak guidance
Dec 15 2013, 21:32 ET