For 2011 first quarter, the company reported 25% year-over-year increase in net sales to $18.5 million from $14.8 million owing to a 26% and 22% increase in revenue from HealthStream Learning and HealthStream Research, respectively. Earnings almost doubled to $1.5 million, or 7 cents per share, from $0.8 million, or 4 cents per share, in the year-ago quarter.
The company recently acquired a 50% stake in Laerdal Medical's Advanced Video System (AVS), a product that enables users of advanced patient simulators to easily capture simulation video, audio, data logs, and "patient" responses, creating a powerful debriefing tool to optimize learning. The company paid $3.5 million in cash, using existing cash balances to fund this transaction.All the five analysts covering the stock recommend buying it. Analysts polled by Bloomberg expect the stock to gain around 14% over the next 12 months with a target price of $11.3. The stock has gained a whopping 106% during the past one year and 28% during the past one month.