S&P 500 (NYSE:SPY) component Cerner Corporation (NASDAQ:CERN) reported net income above Wall Street’s expectations for the second quarter. Cerner Corporation designs and supports healthcare devices, healthcare information technology, and content solutions for organizations and consumers.
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Cerner Corporation Earnings Cheat Sheet
Results: Net income for the medical information systems rose to $97.8 million (56 cents per share) vs. $72 million (42 cents per share) in the same quarter a year earlier. This marks a rise of 35.8% from the year-earlier quarter.
Revenue: Rose 21.6% to $637.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Cerner Corporation beat the mean analyst estimate of 51 cents per share. Analysts were expecting revenue of $638.1 million.
Quoting Management: “I am pleased with our results in the second quarter, which again included strong revenue and earnings growth and very strong cash flow,” Neal Patterson, Cerner chairman, CEO, president and co-founder said. “Our client base continues to make great progress at qualifying for stimulus payments related to the HITECH Act and our strong competitiveness is leading to new clients choosing Cerner. We believe the digitization being driven by the HITECH Act creates a foundation for significant ongoing investments in information technology and services, such as data analytics and population health management, that will be critical as health care providers become accountable for the health of populations under future reimbursement models.”
For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 22.7%, with the biggest boost coming in the first quarter when revenue rose 30.4% from the year earlier quarter.
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 37.4% and in the fourth quarter of the last fiscal year, the figure rose 29.1%.
The company has now beaten analyst estimates for three quarters in a row. It beat the mark by 4 cents in the first quarter and by 3 cents in the fourth quarter of the last fiscal year.
Looking Forward: The average estimate for the third quarter is steady at 56 cents a share. Over the past three months, the average estimate for the fiscal year has climbed from $2.16 per to share to $2.18.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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