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Allscripts (MDRX) Inches Up 0.3% on Earnings Beat in Q1

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Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) inched up 0.3% as of May 4 post the company’s first-quarter 2021 earnings release.

The company’s first-quarter 2021 adjusted earnings per share (EPS) of 19 cents beat the Zacks Consensus Estimate of 15 cents by 26.7%. The bottom line also rose from the year-ago quarter’s 2 cents.

Revenue Details

Revenues totaled $368.4 million, which missed the Zacks Consensus Estimate by a marginal 0.01%. Also, the top line fell 3.4% year over year.

For first-quarter 2021, bookings came in at $194 million, down 49% 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 $222.7 million on a reported basis, down 4% from the year-ago quarter's tally.

Client Services

At this segment, revenues totaled $145.7 million, down 2.4% from the year-ago quarter's figure.

Margins

Gross profit in the first quarter was $150 million, up 13.7% from the year-ago quarter. Gross margin was 40.7%, up 613 basis points (bps) from the year-ago figure.

Adjusted operating profit in the reported quarter was $19 million against the adjusted operating loss of $20.2 million.

 

 

Financial Update

The company exited the first quarter of 2021 with cash and cash equivalents of $513.4 million, down from $531.1 million at the end of the fourth quarter of 2020.

At the end of the first quarter, net cash provided by operating activities totaled $4.5 million compared with net cash of $3.7 million used at the end of the year-ago period.

2021 Guidance

Allscripts reaffirmed its prior current-year revenue view at $1.50 billion, on par with the Zacks Consensus Estimate.

Summing Up

Allscripts ended the first quarter on a mixed note. The company maintained momentum in its Provider business on the back of its 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 gross margin is another positive. The company is optimistic about  the sale  of CarePort and of EPSi.

During this period, Allscripts managed to leverage both its new and existing innovative solutions to help clients and boost patient outcomes.

On the flip side, the company witnessed a decline in its core Client Services and Software delivery unit revenues during the first quarter. Also, the company’s bookings dropped year over year in the quarter. Additionally, 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 are Boston Scientific Corporation (BSX - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific posted adjusted earnings per share (EPS) of 37 cents for the first quarter of 2021, which exceeded the Zacks Consensus Estimate by 23.3%. Revenues of $2.75 billion also exceeded the Zacks Consensus Estimate by 5.3%.

Integer Holdings reported first-quarter 2021 adjusted EPS of 97 cents, which outpaced the Zacks Consensus Estimate by 12.8%. Revenues of $290.5 million also beat the Zacks Consensus Estimate by 2.6%.

HCA Healthcare reported first-quarter 2021 adjusted EPS of $4.14, surpassing the Zacks Consensus Estimate by 23.6%. Net revenues of $14 billion too trumped the Zacks Consensus Estimate by 2.2%.

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