Health care information technology provider Cerner Corp. (NASDAQ: CERN – $66.16) reported second quarter revenue of $1.368 billion, up from $1.292 billion in the year ago quarter and better than the analyst consensus of $1.33 billion. Adjusted earnings were $207.0 million, compared to $205.5 million in the second quarter of 2017. Earnings per share totaled $0.62 on an adjusted basis compared to $0.61 in the year-ago quarter and two cents ahead of analysts’ consensus estimates. Bookings in the second period were $1.775 billion, an increase of 9% compared to $1.636 billion in the second quarter of 2017 and has a total backlog of $14.79 billion. Second quarter free cash flow was $121.1 million.
For the third quarter, Kansas City-based Cerner is guiding for revenue of $1.335 to $1.385 billion, vs. the Street view of $1.351 billion. Earnings per share is targeted at $0.62 to $0.64, vs. expectations of $0.65 per share. For the full year, it sees revenue at $5.325 to $5.450 billion, vs. expectations of $5.371 billion and $2.45 to $2.55 per share earnings, in the range of the consensus of $2.50.
Although gaining about 5% in today’s trading following the quarterly results and guidance, the shares have not performed well so far this year. Nonetheless, aggressive candidate Cerner’s longer-term prospects remain favorable, given its strong market position, and revenue and earnings should progress nicely over the next three to five years.