Health information technology provider, Cerner Corp. (NASDAQ: CERN – $51.41) reported fourth quarter revenue at $1.26 billion, an increase of 7% from the year-ago period and within the company’s guidance range. Full-year 2016 revenue was $4.80 billion, up 8% compared to 2015. Adjusted net earnings per share for the period was $0.61, which is flat from the year-ago quarter, but within the company’s guidance range as well as Street estimates. For the full year 2016, adjusted earnings were $2.30 vs. $2.11 last year. Bookings in the fourth quarter were $1.44 billion, an increase of 7% compared to $1.35 billion in the fourth quarter of 2015 and within the company’s guidance. Total backlog of $15.927 billion, up 12% over the year-ago quarter.
The company guided full year 2017 adjusted earnings per share between $2.44 and $2.56, in the range of consensus of $2.51, with first quarter new business bookings between $1.125 billion and $1.275 billion. Traders, however, were looking for more as the shares are trading about 4.5% lower on the day. Cerner stock may interest patient investors willing to assume some risk. The company has a strong position in the healthcare information technology business, with revenue, earnings and market share likely advancing nicely over the next three to five years.