Cerner Posts Strong Results; Confirms Guidance
Healthcare information technology provider Cerner Corp. (NASDAQ: CERN – $64.75) said bookings in the first quarter of 2017 were $1.25 billion, an increase of 7% compared to $1.17 billion in the first quarter of 2016 and above the midpoint of the Company’s guidance range. First quarter revenue was $1.26 billion and better than most estimates of $1.25 billion. Adjusted earnings were $197.8 million, compared to $182.4 million in the first quarter of 2016, and equal to $0.59 per share, an increase of 11% from last year’s $0.53. Analysts’ consensus estimate for first quarter was $0.57. First quarter operating cash flow was $303.6 million and the company’s backlog was up 10% from last year at this time to $16.1 billion, on a number of new client wins.
Cerner reiterated guidance that also pleased investors with second quarter revenue between $1.265 billion and $1.335 billion, and full year 2017 revenue between $5.1 billion and $5.3 billion. Cerner is looking for 2017 earnings per share between $2.44 and $2.56, on the high-end of analysts’ expectations. The Street is also looking ahead to next year with earnings of $2.76. The shares of CERN bounced nearly 8% on the earning’s news and guidance. Positions can continue to be held for long-term growth in aggressive accounts.