Shares of Quality Systems Inc., an Irvine-based healthcare software company, rose 7% Tuesday after the company beat Wall Street expectations with its profits for the quarter ended Dec. 31.
After the close of trading Monday, Quality said it earned $4.2 million, versus $2.6 million a year earlier. Analysts had expected profit of about $3.6 million.
Sales for the quarter rose 21% to $22.1 million.
The company’s shares rose 7% to $76 on Tuesday. Shares of the software maker are up 27% this year.
Quality said its results were driven by increased revenue in its NextGen Healthcare Information Systems division.
NextGen had operating income of $6.7 million on revenue of $18.7 million. Quality and NextGen develop and market computer-based practice management, patient records and connectivity software for medical and dental group practices.
Analysts have been bullish on Quality and some of its competitors, noting that demand for healthcare information technology improvement is being driven by doctors, hospitals and other payers.
Quality counted a recent market value of $490 million.
