NextGen Healthcare, Inc. (NASDAQ:NXGN) is well-positioned for growth in the future quarters on the strength of its robust product range. Its solutions have been in high demand over the past few months, and the company’s first quarter of fiscal 2023 showed strong results, so this should only add to its bottom line. The company has challenges due to operating in a competitive landscape and reliance on third-party partners.
A year’s worth of gains of 15.5% for this Zacks Rank #3 (Hold) company compares well to the industry’s decrease of 44.3% and the S&P 500’s decline of 6.8%.
This well-known company has a market worth of $1.19 billion and is a leading global provider of cutting-edge, cloud-based healthcare IT solutions. NextGen Healthcare, Inc. (NASDAQ:NXGN) anticipates maintaining its good performance and estimates 7.3% growth for fiscal 2024. For three of the trailing four quarters, profits were above the Zacks Consensus Estimate, and earnings for the other quarter were below, for an average surprise of 10.5%.
Let’s dive into this matter more on NextGen
NXGN’s (NASDAQ:NXGN) unique cloud-based healthcare technology solutions enable high-quality healthcare practices, and we have high hopes for them. Consumerism, digitization, risk allocation, regulatory influence, integrated care, and health equity are just some of the ambulatory healthcare imperatives met by the company’s suite of tightly integrated solutions.
The software as a service company (NASDAQ:NXGN) stated in August that they would be expanding the capabilities of its Virtual Visits, allowing for virtual group visits and the inclusion of more stakeholders in telehealth appointments for both practices and patients.
Our confidence is bolstered by the growing demand for NextGen solutions since it (NASDAQ:NXGN) is a preeminent force in the lucrative U.S. Revenue Cycle Management (RCM) sector. NextGen’s other products, such as those for hospitals, EHRs, and practice management, are all in high demand, so the company will gain even more in the future. NextGen’s Inpatient Clinicals, Lab, and Patient Portal Electronic Health Record (EHR) solutions have also proven quite popular.
In July, NextGen shared the news that they had deepened their partnership with J.P. Morgan subsidiary InstaMed. NextGen Pay, powered by InstaMed, is at the heart of this partnership, which aims to streamline the payment process.
NextGen’s first-quarter fiscal 2023 results were encouraging, especially in light of the year-over-year increase in revenue. It promises to see quarterly growth in both recurring and subscription services revenues. Several surrounding solutions, including mobile and telehealth, and continued success in the NextGen Office and Enterprise spaces are encouraging signs.
The healthcare information system market is highly competitive, and NextGen must contend with stiff competition from several different directions. A number of its rivals have far more financial backing. Some of NextGen’s significant competitors have become and may continue to become more involved in the markets via internal development and acquisitions.
Having a portion of its assets and activities in India and relying on third-party service providers in India and other countries exposes NextGen to several risks. American businesses in India and the states in which they operate have benefited from various government measures, but there is no guarantee that this trend will continue.
Trend Forecasting: NextGen
For NextGen’s fiscal 2023, there is a downward trend in forecast revisions. The Zacks Consensus Estimate for its earnings has decreased 3% over the past 90 days, dropping to 96 cents.
Revenues for the second quarter of fiscal 2023 are expected to be $156.7 million, according to the Zacks Consensus Estimate, which is an increase of 4.9% from last year.
AMN Healthcare, which is currently sporting a Zacks Rank #1 (Strong Buy), is expected to grow at a rate of 3.2% over the long term. In each of the four most recent quarters, AMN’s earnings have topped the Zacks Consensus Estimate by an average of 15.7%.
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Author Shariq Khan 
