Cerner (CERN) Beats Q2 Earnings, Revises '16 Revenue View
Zacks Investment Research | Aug 03, 2016 02:49AM ET
Cerner Corp. (NASDAQ:CERN) reported strong second-quarter 2016 earnings. After a miss in the previous quarter, bookings recovered, increasing 9% year over year to $1.40 billion.
However, the company lowered the high end of its guidance for revenues but reiterated the earnings guidance for the full-year of 2016.
Cerner reported adjusted earnings of 54 cents per share (including stock-based compensation), which beat the Zacks Consensus Estimate by a penny and increased 11.5% on a year-over-year basis driven by 8% growth in revenues. Excluding stock-based compensation, earnings were 58 cents, up 11.5% year over year in the quarter.
Meanwhile, revenues of almost $1.22 billion also beat the consensus mark of $1.21 billion and were well within the management’s guided range of $1.175 billion to $1.25 billion.
Revenues in the U.S. increased 8% from the year-ago quarter to $1.073 billion, while non-U.S. revenues grew 9% to $143 million.
Cerner believes the replacement market will remain active due to higher number of hospitals on legacy platforms providing a significant growth prospect for the company. Management also noted that its products continue to seize market share from the clutches of its competitors.
Cerner stated that most of the new electronic health record (EHR) clients selected the Revenue Cycle product as part of their purchase. Several large clients also chose Cerner’s acute Revenue Cycle and ambulatory business office services during the quarter. The company also made several new client additions to the HealtheIntent platform.
Quarter Details
System sales increased 5.7% year over year to $333.1 million, supported by strong growth in software partially offset by a decline in hardware sales.
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