Shares of
Doximity
were rising double-digits after the online platform for medical professionals raised its outlook, leaving analysts upbeat about its future.
Doximity
(ticker: DOCS) rose 19% to $24.41 in premarket trading on Friday.
Along with its fiscal second-quarter results on Thursday, Doximity said it expects fiscal-year revenue of between $460 million and $472 million and adjusted earnings before interest, tax, depreciation, and amortization between $207 million and $219 million. It previously anticipated revenue of between $452 million and $468 million and adjusted earnings of between $193 million and $209 million.
The guidance boost had William Blair analysts Ryan Daniels and Jared Haase feeling optimistic. “We believe the solid results and improved guidance range mark a positive step for the company, as management seeks to rebuild credibility with investors following multiple guidance resets in recent quarters,” they wrote. The analysts rate shares at Outperform.
Raymond James analysts, led by Brian Peterson, also rate shares at Outperform. They have a $30 price target on the stock.
“While the company isn’t fully immune from cyclical dynamics … recent developments have increased our conviction in DOCS’ ability to grow faster than the overall market,” the analysts wrote.
For its fiscal second quarter, the company posted adjusted earnings of 22 cents a share, above Wall Street estimates for 17 cents, according to FactSet. Revenue of $113.6 million beat expectations for $109.1 million.
A “beat-and-raise second quarter Is just what the doctor ordered,” William Blair analysts wrote.
The company’s board also authorized another program to repurchase up to $70 million of the company’s Class A common stock.
Write to Emily Dattilo at emily.dattilo@dowjones.com
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