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Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) declined 1.9% on Oct 30 after the company reported its earnings results.
The company’s third-quarter 2020 adjusted earnings per share (EPS) of 20 cents beat the Zacks Consensus Estimate of 18 cents by 11.1%. The bottom line also rose 17.6% on a year-over-year basis.
Revenue Details
Revenues totaled $402.1 million, which missed the Zacks Consensus Estimate by 4.5%. Also, the top line fell 9.5% year over year.
For third-quarter 2020, bookings came in at $187 million, down 20.8% from the prior-year quarter.
Segment Details
The Provider segment consists of core integrated clinical software applications, financial management and patient engagement solutions targeted at clients across the entire continuum of care. Meanwhile, the new Veradigm segment primarily focuses on the payer and life sciences market.
Software delivery, Support and Maintenance
In the quarter under review, revenues at the segment amounted to $250.6 million on a reported basis, down 11.9% from the year-ago quarter's tally.
Client Services
At this segment, revenues totaled $151.5 million, down 5.2% from the year-ago quarter's figure.
Allscripts Healthcare Solutions, Inc. Price, Consensus and EPS Surprise
Gross profit in the third quarter was $162 million, down 7.8% from the year-ago quarter. Gross margin was 40.2%, up 72 basis points (bps) from the year-ago figure.
Adjusted operating profit in the reported quarter was $16 million, up 54.4%. Adjusted operating margin was 3.9%, an expansion of 164 bps.
Financial Update
The company exited the third quarter of 2020 with cash and cash equivalents of $218.7 million, up from $199 million at the end of the second quarter.
At the end of the third quarter, cumulative net cash provided by operating activities totaled $71.9 million compared with cumulative net cash of $33.9 million at the end of the year-ago period.
2020 Guidance
Allscripts did not provide quarterly or full-year 2020 guidance.
Summing Up
Allscripts ended the third quarter on a mixed note. The company maintained momentum in its Provider business on the back of key client wins. It is confident about its near and long-term outlook as it expects to benefit from a number of differentiated opportunities in its Provider and Veradigm businesses. Expansion of both margins is a positive.The company is optimistic about its agreement to sell CarePort and the sale of EPSi.
The company’s third-quarter results were impacted by the COVID-19 pandemic. During this uncertain period, Allscripts managed to leverage both new and existing innovative solutions to help clients and boost patient outcomes.
Meanwhile, the company witnessed a decline in its core Client Services and Software delivery unit revenues during the third quarter. Also, the company’s bookings declined year over year in the quarter. Allscripts is exposed to integration risks. Intense competition in the niche space is also a concern.
Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.
Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.
AngioDynamics reported first-quarter fiscal 2021 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss per share of 6 cents. Revenues of $70.2 million beat the consensus mark by 6.9%.
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Image: Bigstock
Allscripts (MDRX) Declines 1.9% Despite Q3 Earnings Beat
Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) declined 1.9% on Oct 30 after the company reported its earnings results.
The company’s third-quarter 2020 adjusted earnings per share (EPS) of 20 cents beat the Zacks Consensus Estimate of 18 cents by 11.1%. The bottom line also rose 17.6% on a year-over-year basis.
Revenue Details
Revenues totaled $402.1 million, which missed the Zacks Consensus Estimate by 4.5%. Also, the top line fell 9.5% year over year.
For third-quarter 2020, bookings came in at $187 million, down 20.8% from the prior-year quarter.
Segment Details
The Provider segment consists of core integrated clinical software applications, financial management and patient engagement solutions targeted at clients across the entire continuum of care. Meanwhile, the new Veradigm segment primarily focuses on the payer and life sciences market.
Software delivery, Support and Maintenance
In the quarter under review, revenues at the segment amounted to $250.6 million on a reported basis, down 11.9% from the year-ago quarter's tally.
Client Services
At this segment, revenues totaled $151.5 million, down 5.2% from the year-ago quarter's figure.
Allscripts Healthcare Solutions, Inc. Price, Consensus and EPS Surprise
Allscripts Healthcare Solutions, Inc. price-consensus-eps-surprise-chart | Allscripts Healthcare Solutions, Inc. Quote
Margins
Gross profit in the third quarter was $162 million, down 7.8% from the year-ago quarter. Gross margin was 40.2%, up 72 basis points (bps) from the year-ago figure.
Adjusted operating profit in the reported quarter was $16 million, up 54.4%. Adjusted operating margin was 3.9%, an expansion of 164 bps.
Financial Update
The company exited the third quarter of 2020 with cash and cash equivalents of $218.7 million, up from $199 million at the end of the second quarter.
At the end of the third quarter, cumulative net cash provided by operating activities totaled $71.9 million compared with cumulative net cash of $33.9 million at the end of the year-ago period.
2020 Guidance
Allscripts did not provide quarterly or full-year 2020 guidance.
Summing Up
Allscripts ended the third quarter on a mixed note. The company maintained momentum in its Provider business on the back of key client wins. It is confident about its near and long-term outlook as it expects to benefit from a number of differentiated opportunities in its Provider and Veradigm businesses. Expansion of both margins is a positive.The company is optimistic about its agreement to sell CarePort and the sale of EPSi.
The company’s third-quarter results were impacted by the COVID-19 pandemic. During this uncertain period, Allscripts managed to leverage both new and existing innovative solutions to help clients and boost patient outcomes.
Meanwhile, the company witnessed a decline in its core Client Services and Software delivery unit revenues during the third quarter. Also, the company’s bookings declined year over year in the quarter. Allscripts is exposed to integration risks. Intense competition in the niche space is also a concern.
Zacks Rank and Key Picks
Allscripts currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Thermo Fisher Scientific Inc. (TMO - Free Report) , Align Technology, Inc. (ALGN - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) , each carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.
Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.
AngioDynamics reported first-quarter fiscal 2021 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss per share of 6 cents. Revenues of $70.2 million beat the consensus mark by 6.9%.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>