Cerner Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Cerner (NASDAQ:CERN) will unveil its latest earnings on Tuesday, February 5, 2013. Cerner Corporation designs and supports healthcare devices, healthcare information technology, and content solutions for organizations and consumers.

Cerner Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 60 cents per share, a rise of 13.2% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 26.7% versus last year to $2.23.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting profit of 56 cents per share against a mean estimate of net income of 55 cents per share.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

A Look Back: In the third quarter, profit rose 25.4% to $98.9 million (56 cents a share) from $78.8 million (45 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 18.3% to $676.5 million from $571.6 million.

Wall St. Revenue Expectations: Analysts predict a rise of 13.1% in revenue from the year-earlier quarter to $696.5 million.

Analyst Ratings: With 11 analysts rating the stock a buy, one rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 23.4% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 37.4% in the first quarter and 35.8% in the second quarter before increasing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.52 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.57 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 6.6% to $496 million while assets rose 5.1% to $1.75 billion.

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 by Xignite Financials. Earnings estimates provided by Zacks)