HealthStream, Inc. (NASDAQ:HSTM) Profits In Line with Estimates, Revenues Miss

HealthStream, Inc. (NASDAQ:HSTM) released earnings and profits were in line with estimates but revenues missed. For the fourth quarter in 2014 revenues came in at $45.3 million. That was up 22% from the same period last year. Operating income was $4.2 million which was also a 20% gain year-over-year. Net income was $2.6 million and the EPS was 9 cents. This was a change of 50% on the bottom line when compared to the fourth quarter of 2013. Full year revenues were $170 million a 23% gain over 2013 results. Operating income came in at $16.4 million and net income was $10 million or 37 cents per share.

Let this analyst breakdown the obvious technical-indicators for HSTM.

Good Growth

The numbers were all gains against the same period whether it was for the quarter of the year. HealthStream Workforce Development Solutions revenue increased by over $8 million, or 28%.Subscripition-based services increased by over $7 million, or 29%. HealthStream, Inc. (NASDAQ:HSTM) grew subscribers in the service and that helped the segment. Courseware subscriptions for training and other functions saw a gain in popularity and they were helped by that renewed interest. The acquisition of HealthCare Compliance Strategies added another $8 million to the revenue stream.

Lower Tax Rate

HealthStream, Inc. (NASDAQ:HSTM) helped the bottom lined by getting into a lower tax rate that resulted from research and development tax credits. This all contributed to the company turning profits around and maximizing revenues. The company offers a SaaS solution and is contracted by 4.3 million employees in the healthcare industry. They provide training, certification, talent management and performance assessment. They operate out of Nashville, Tennessee. They offer valuable research that is used by healthcare professionals to improve the patients experience and create higher standards of professionalism and customer satisfaction.

Technicals

The stock took a downturn recently but it only retraced to back fill the gap created by the last big runoff. The issue looks reasonably healthy and just need to put some base building in. Support held so long as it does not violate that it should be okay.

About the Author

Coper graduated from the University of Chicagi with majors in political science and journalism.

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