Health care workforce development company HealthStream reported a second-quarter profit of $2.4 million, representing no change from the year prior. Per diluted share, earnings were 8 cents, beating analysts expectations by a penny.
The Nashville-based company announced revenues of $42.5 million, up 33 percent from Q2 2013. The company reported gains of $9.3 million in its workforce development solutions segment and said profits from subscription-based services increased 42 percent.
Revenues associated with ICD-10 training products totaled $7.2 million, up from $2.9 million in Q2 '13. The company faced uncertainty earlier this year after the federal government indefinitely postponed the ICD-10 implementation deadline, but bounced back slightly when a new date was set for Oct. 1, 2015. The company's annualized revenue per subscriber has risen consistently for seven quarters, and finished Q2 at $35.39. HealthStream has 3.9 million current and contracted subscribers.
"HealthStream's innovative solutions for workforce development and improving the patient experience are increasingly being sought after by health care providers as they partner with us to improve the quality of care delivered — as reflected by increasing revenues for the company," Bobby Frist, CEO of HealthStream, said in a release.
In a note to clients Monday evening, Avondale Partners Richard Close said Frist and his team had put up "a respectable 2Q that showed continued momentum" and added that he continues to recommend investors accumulate shares of the HealthStream (Ticker: HSTM), which were down 1.5 percent Monday afternoon to $22.25. Year to date, they're off 31 percent. Close has a price target of $33.50.
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