Cerner Earnings: Here’s Why Shares are Up Now
Cerner Corp. (NASDAQ:CERN) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.24%.
Cerner Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 13.33% to $0.34 in the quarter versus EPS of $0.30 in the year-earlier quarter.
Revenue: Rose 11.01% to $707.56 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Cerner Corp. reported adjusted EPS income of $0.34 per share. By that measure, the company met the mean analyst estimate of $0.34. It missed the average revenue estimate of $725.71 million.
Quoting Management: “Our record bookings, strong overall results, and positive outlook reflect an ongoing favorable market environment for Cerner,” Neal Patterson, Cerner chairman, CEO, president and co-founder said. “We believe our solutions and services are well aligned with the needs of health care providers as they face a growing list of measures and mandates that require effective use of information technology. Significant investments in research and development have positioned us well for the current market environment, and we continue to increase these investments as we believe ongoing industry shifts will create substantial opportunities for Cerner for many years to come.”
Key Stats (on next page)…
Revenue increased 4.05% from $680.03 million in the previous quarter. EPS increased 3.03% from $0.33 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.36 and has not changed. For the current year, the average estimate has moved up from a profit of $1.40 to a profit of $1.41 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)