Why Doximity Stock jumped on Monday
Actions of Proximity (NYSE: DOCS) traded higher on Monday, climbing to 14.8% on rising investor enthusiasm, although the stock ended the trading session up 14%. The cloud-based service for doctors and other healthcare professionals hasn’t climbed on any specific news, but has been riding a wave of positive sentiment that began with its first financial report as a public company. In total, the stock has gained more than 60% since the publication of its results on August 10.
For its first quarter of fiscal 2022 (which ended June 30), Doximity generated revenue of $ 72.7 million, up 100% year-over-year, accelerating from annual growth of 36% and 78% in fiscal 2020 and 2021, respectively. The company also generated earnings per share of $ 0.09, up from the breakeven quarter of the previous year.
Doximity also benefited from positive comments from CNBC’s Jim Cramer. The TV personality and former hedge fund manager said investors should “absolutely” buy Doximity shares, calling her a “star” and “the best of the best.”
“Their EBITDA [earnings before interest, taxes, depreciation, and amortization] the margin was 43%, ”added Cramer. “Analysts were only looking for 30%. It’s extraordinary.”
Investors are also celebrating Doximity’s strong outlook for its fiscal second quarter and full year. The company expects revenue of $ 73.5 million at the midpoint of its forecast, beating analysts’ consensus estimate of $ 71.8 million. Additionally, for fiscal 2022, Doximity forecasts revenue of between $ 296.5 million and $ 299.5 million, ahead of analyst expectations of $ 295.5 million.
The company’s acceleration in revenue, earnings growth and positive commentary from analysts have sparked investor enthusiasm for its outlook.
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