Cerner Corp Earnings: Fifth Straight Quarters of Double-Digit Growth

S&P 500 (NYSE:SPY) component Cerner Corporation (NASDAQ:CERN) reported net income above Wall Street’s expectations for the first 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 First Quarter

Results: Net income for Cerner Corporation rose to $88.7 million (52 cents per share) vs. $64.6 million (38 cents per share) in the same quarter a year earlier. This marks a rise of 37.4% from the year-earlier quarter.

Revenue: Rose 30.4% to $641.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cerner Corporation reported adjusted net income of 54 cents per share. By that measure, the company beat the mean estimate of 47 cents per share. It beat the average revenue estimate of $578.4 million.

Quoting Management: “Our strong first quarter bookings, revenue, earnings and cash flow represent a great start to the year,” Neal Patterson, Cerner chairman, CEO, president and co-founder said. “Meaningful Use requirements included in the HITECH Act continue to drive a wave of adoption in our client base and significant opportunities to establish new footprints. We are also investing heavily in solutions and services that position Cerner for growth beyond Meaningful Use. We believe there will be substantial opportunities in data analytics and population health management as the industry becomes digitized while also transitioning from volume-based payment programs to programs based on measurements of quality and outcomes.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 21.2%, with the biggest boost coming in the most recent 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 fourth quarter of the last fiscal year, net income rose 29.1% and in the third quarter of the last fiscal year, the figure rose 29.5%.

The company has beaten estiamtes for two quarters in a row. In the fourth quarter of the last fiscal year, it topped expectations with net income of 53 cents versus a mean estimate of net income of 50 cents per share.

Looking Forward: Expectations for the second quarter have not changed from 51 cents. The average estimate for the fiscal year is $2.16 per share, a rise from $2.15 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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