NEW YORK (AP) -- Shares of HealthStream Inc. jumped Tuesday after the company raised its full-year revenue outlook, saying it expects better results from its learning business.
HealthStream provides Internet-based educational and training content for health care professionals.
The Nashville, Tenn., company said its net income grew in the second quarter, and revenue from the Internet business climbed. HealthStream said its net income rose to $2.4 million, or 9 cents per share, from $1.8 million, or 8 cents per share.
Revenue rose 23 percent to $25.8 million from $21.1 million.
Analysts were expecting earnings of 9 cents per share on revenue of and $25.5 million, according to FactSet.
Shares rose $3.09, or 13.3 percent, to $26.36 in afternoon trading after rising to a new all-time high of $27.49 earlier in the session.
HealthStream said it had 2.9 million contracted subscribers at the end of the quarter, including 2.8 million health care professionals who had completed training in its programs. It had 2.6 million subscribers at the end of June 2011.
The company said it still expects its operating income to rise 20 to 26 percent in 2012, which implies a total of $13.6 million to $14.3 million. On average analysts are forecasting $14.4 million in operating income. HealthStream now says its revenue will grow 22 to 25 percent for the year, to a range of $100.1 million to $102.6 million. It previously said revenue would increase 21 to 25 percent. The new forecast includes growth of 30 to 34 percent for the learning business, up from 28 to 32 percent.
Analysts are projecting $101.2 million in revenue on average.
