Cerner (CERN) Misses Earnings & Revenue Estimates In Q2
Zacks Investment Research | Jul 27, 2017 09:54PM ET
Cerner Corp (NASDAQ:CERN) reported adjusted second-quarter 2017 earnings of 56 cents per share, missing the Zacks Consensus Estimate by a penny. Notably, earnings improved 5.7% from the year-ago quarter.
The company reported net revenues of $1.292 billion, falling short of the Zacks Consensus Estimate of $1.3 billion. However, revenues rose 6.3% on a year-over-year basis. Cerner holds a Zacks Rank #2 (Buy).
Quarter Highlights
Bookings Update: Bookings in the second quarter of 2017 were $1.636 billion (an all-time high), up 16% on a year-over-year basis.
Revenue Cycle has been a strong contributor to the company’s results, courtesy of strong sales and solid contribution from RevWorks services (revenue management services). Population Health service businesses also drove revenues in the second quarter on solid growth in the company’s flagship HealtheIntent solutions. The company also posted an impressive performance in the ambulatory and small hospital market.
Segment Details: System sales increased 4.4% to $347.8 million. Solid sales were buoyed by licensed software and subscriptions, partially offset by a decline in technology resale.
Total services revenues, including professional and managed services, rose 9% from the year-ago quarter to $917.4 million. This reflects solid execution by the company’s service organizations.
Support and maintenance revenues increased 1% in the quarter, slightly below the company’s full-year expected growth rate. Cerner expects growth in the band 3% to 4% at the segment for the rest of the year.
Geographically, domestic revenues increased 8% from the year-ago quarter to $1.16 billion, while non-U.S. revenues fell 5% to $136 million.
Cerner Corporation Price, Consensus and EPS Surprise
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