Cerner Corp Earnings Cheat Sheet: Profits Grow by Double Digits For Fifth Straight Quarter

S&P 500 (NYSE:SPY) component Cerner Corporation (NASDAQ:CERN) reported net income above Wall Street’s expectations for the third quarter. Cerner Corporation designs and supports healthcare devices, healthcare information technology, and content solutions for organizations and consumers.

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Cerner Earnings Cheat Sheet for the Third Quarter

Results: Net income for Cerner Corporation rose to $78.8 million (45 cents per share) vs. $60.9 million (36 cents per share) in the same quarter a year earlier. This marks a rise of 29.5% from the year earlier quarter.

Revenue: Rose 23.5% to $571.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CERN reported adjusted net income of 48 cents per share. By that measure, the company beat the mean estimate of 45 cents per share. It beat the average revenue estimate of $533.3 million.

Quoting Management: “We delivered strong results in Q3, including outstanding bookings, revenue, earnings, and cash flow performance,” said Neal Patterson, Cerner chairman, CEO, president and co-founder. “We continue to see a high level of interest in our broad suite of solutions and services, which is reflected in the record attendance at our recent Cerner Health Conference, as health care providers recognize the need to leverage information technology in order to meet upcoming regulatory requirements. Additionally, providers are looking to cloud-based platforms, such as Cerner Healthe IntentTM, that leverage EHR data to improve quality while controlling the cost of care. We believe Cerner remains well positioned to continue benefitting from demand driven by stimulus and the changing landscape of health care as we strengthen our alignment with our clients around the world,” Patterson said.

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 29.9% and in the first quarter, the figure rose 28.4%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the second quarter, by 2 cents in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 15% to $524.2 million in the second quarter. The figure rose 14% in the first quarter from the year earlier and climbed 7.3% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 50 cents a share to 49 cents over the last sixty days. Over the past three months, the average estimate for the fiscal year has climbed from $1.72 per to share to $1.73.

Competitors to Watch: Allscripts Healthcare Solutions Inc (NASDAQ:MDRX), Mediware Info. Systems (NASDAQ:MEDW), CareFusion Corporation (NYSE:CFN), Quality Systems, Inc. (NASDAQ:QSII), Merge Healthcare Inc. (NASDAQ:MRGE), McKesson Corporation (NYSE:MCK), Streamline Health Solutions Inc. (NASDAQ:STRM), Aspyra Inc. (APYI), Omnicell, Inc. (NASDAQ:OMCL), and Computer Sciences Corp. (NYSE:CSC).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)