Market Insider

Athenahealth shares soar on reaffirmed guidance, upbeat outlook

Jonathan Bush, former CEO of Athenahealth
Kate Rooney | CNBC

Shares of Athenahealth soared nearly 23 percent Thursday after the company reaffirmed its guidance for the fiscal year and issued an upbeat forecast for 2017.

On Wednesday, the Massachusetts-based company, which provides cloud-based services for healthcare, said for 2016 it expects earnings in the range of $1.65 and $1.85 per share on revenue between $1.085 billion to $1.115 billion. Analysts expect $1.79 a share on revenue of $1.10 billion, according to Thomson Reuters.

Athenahealth also said total annual revenue could hit as much as $1.33 billion in the new year. The company sees annual bookings in the range of $400 million to $450 million, and operating income between $61 million and $81 million.

"As we look towards 2017, we will be focused on further evolving our platform and further extending our technology assets so we can go deeper with our core services and broader with our network services," CFO Karl Stubelis said in a statement.

Analysts polled by Thomson Reuters expected the cloud-based services company to post $1.29 billion in total revenue for 2017.

Even with Thursday's gains, the stock has fallen more than 27 percent year to date.

Athenahealth 5-Day Chart