NEW YORK (TheStreet) -- HealthStream Inc (HSTM) shares are down -6.9% to $22.69 on heavy volume on Tuesday. By midday, 293,000 shares had been traded, surpassing the stock's three month daily average volume of 218,500 thousand shares.
The declinel follows the release of the company's first quarter earnings report after the closing bell on Monday.
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The healthcare organization research and solutions provider posted revenue of $38.3 million in the first quarter, surpassing first quarter 2013's revenue by 29%, but falling short of analysts consensus estimates of $41.01 million.
Net income for the quarter was $1.9 million, or 7 cents per diluted share, missing analysts EPS estimates of 9 cents per diluted share.
TheStreet Ratings team rates HEALTHSTREAM INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HEALTHSTREAM INC (HSTM) 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, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow."