HMS (HMSY) Stock Spiking on Q2 Earnings Beat

NEW YORK (TheStreet) -- Shares of HMS (HMSY) were soaring 10.44% to $21.69 on heavy trading volume late Friday afternoon following the company's solid 2016 second quarter results.

Before today's market open, the Irving, TX-based benefits coordinator and billing auditor for healthcare reported adjusted earnings of 18 cents per share, topping analysts' estimates of 15 cents per share.

Revenue for the quarter was $123.6 million, higher than Wall Street's forecasts of $116.9 million.

"With commercial health plan revenue up 20% in the first half of this year, compared to the comparable period in 2015, we are on course to achieve our full-year growth target of 18-20%," CEO Bill Lucia said in a statement.

About 1.01 million of the company's shares changed hands so far today compared to its average 30-day volume of 593,689 shares per day.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance.

But the team finds that the company's return on equity has been disappointing.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: HMSY