Quality Systems Inc.’s shares were hit Wednesday after a Jefferies & Co. analyst said he expects smaller gains for the Irvine-based medical software company.
Quality’s shares closed down 9.5% with a market value of $860 million after falling 8.3% in afterhours trading on Tuesday.
Analyst Richard Close maintained a “buy” rating on Irvine-based Quality, but cut his target price to $39 from $45 and lowered his outlook.
Shares were trading at about $32 on Wednesday.
Close’s action came after Quality said profit for the quarter ended March 31 rose 32% to $11.3 million, meeting analysts’ estimates.
Quarterly revenue was up 13.5% to $51.2 million, with most of that coming from maintenance revenue, rather than software sales.
The company’s revenue came in below Close’s estimates, although the company was able to bring in 70 clients during the quarter.
Another analyst, Todd Weller of Stifel Nicolaus & Co., said Quality’s quarter was “not bad on the whole” and reaffirmed a “buy” rating.
In a client note, Weller said he saw “more positives than negatives in the quarter” with customer acquisitions and pipeline growth.
The company makes software that doctors and dentists use to manage their practices.
