Why athenahealth (ATHN) Stock Is Down Today

NEW YORK (TheStreet) -- Athenahealth (ATHN) was falling 1.1% to $144 after-hours Thursday after missing analysts' estimates for earnings and revenue in the first quarter.

For the first quarter athenahealth posted earnings of 12 cents a share, missing analysts' estimates of 17 cents a share by 5 cents. Revenue grew 29.8% to $163.03 million, though it missed the Capital IQ Consensus Estimate of $169.99 million by $6.96 million.

"By making targeted investments in growth, innovation, and facilities, we are positioning the company to continue on our 30 percent growth trajectory," president and CEO Jonathan Bush said in a press release. "We continue to transform and grow our network with a keen eye on our vision of building an information backbone that helps make health care work as it should. The athenahealth team is focused on building the services that caregivers trust, by providing simplified solutions that enable them to thrive despite a rapidly changing health care landscape. We remain committed to further advancing the state of the industry, proactively seeking ways to increase accountability and disrupt the status quo."

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TheStreet Ratings team rates ATHENAHEALTH INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate ATHENAHEALTH INC (ATHN) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and premium valuation."

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