MedAssets 2010 profit forecast misses estimates

AP News
Posted: Dec 09, 2009 7:56 AM

Hospital software company MedAssets Inc. on Wednesday forecast a profit in 2010 that was beneath Wall Street expectations, although its revenue forecast was on par with estimates.

For this year, the company expects a profit of 78 cents to 84 cents per share if one-time items are left out, with $341 million to $345 million.

Analysts are forecasting 82 cents per share and $342.3 million in revenue.

MedAssets expects to earn 45 cents to 55 cents per share in 2010, or 86 cents to 96 cents per share excluding one-time costs and gains. The company called for $390 million to $400 million in revenue, comprising $245 million to $251 million from revenue cycle management software, and $144 million to $150 million in spend management software.

According to a Thomson Reuters survey, analysts expect a profit of $1 per share, with $397.3 million in revenue. Analyst estimates generally exclude one-time items.

MedAssets said its estimate translates to adjusted profit growth of 11 percent, with total revenue growing 15 percent from this year to next.