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Allscripts (MDRX) Beats on Q1 Earnings, Revenues In Line
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Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) reported first-quarter 2017 earnings of 10 cents per share, beating the Zacks Consensus Estimate by a penny. The figure outperformed the year-ago earnings of 9 cents per share.
Revenues grew 20% to $415 million, in line with the Zacks Consensus Estimate.
Stock Performance
Year to date, Allscripts’ shares have increased roughly 17.53%, comparing unfavorably with the Zacks categorized Medical Information Systems sub-industry’s addition of 22.27%. The current level is higher than the S&P 500’s return of 8.22% over the same time frame.
Quarter Highlights
Bookings: Bookings in the first quarter were $286 million, up 13% on a year-over-year basis. The rise was driven by solid sales of Sunrise in the U.S. and international markets.
Allscripts Healthcare Solutions, Inc. Price, Consensus and EPS Surprise
Software delivery, support and maintenance revenue: This segment consists of all software, hardware, subscription, other transactions and support and maintenance revenues. According to management, revenues from the segment increased 19% to $273 million in the quarter.
Client services revenue: This segment consists of recurring managed services and other project-based client services revenues. Client service revenues were up 22% on a year-over-year basis to $142 million.
Recurring revenue: This segment consists of subscriptions, recurring transactions, support and maintenance and recurring managed services. Recurring revenues increased 23% on a year-over-year basis.
Non-recurring revenue: This segment comprises systems sales and other project-based client service revenues. Non-recurring revenues increased 11% on a year-over-year basis.
Margin Details
Allscripts registered a gross margin of 43.2% in the first quarter compared with 44.0% in the year-ago quarter.
Adjusted operating expenses in the quarter totaled $141 million, reflecting an 18% year over year increase.
Guidance
For the full year, the company expects revenues between $1.71 billion and $1.74 billion, implying growth of 8–10%. Adjusted earnings per share are expected to grow in the band of 10% to 15%.
Zacks Rank & Stocks to Consider
Allscripts’ has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector include Neovasc Inc. , Hologic, Inc. (HOLX - Free Report) and Sunshine Heart Inc . Neovasc and Hologic sport a Zacks Rank #1 (Strong Buy), while Sunshine Heart holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 32.8%.
Sunshine Heart deliver a positive earnings surprise of 58.24% in the last quarter. The stock recorded a stellar EPS growth rate (last 3–5 years of actual earnings) of 22%.
Neovasc has seen a stellar gain of 14% over the last three months. The company projects sales growth of 102.88% for the current year.
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Allscripts (MDRX) Beats on Q1 Earnings, Revenues In Line
Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) reported first-quarter 2017 earnings of 10 cents per share, beating the Zacks Consensus Estimate by a penny. The figure outperformed the year-ago earnings of 9 cents per share.
Revenues grew 20% to $415 million, in line with the Zacks Consensus Estimate.
Stock Performance
Year to date, Allscripts’ shares have increased roughly 17.53%, comparing unfavorably with the Zacks categorized Medical Information Systems sub-industry’s addition of 22.27%. The current level is higher than the S&P 500’s return of 8.22% over the same time frame.
Quarter Highlights
Bookings: Bookings in the first quarter were $286 million, up 13% on a year-over-year basis. The rise was driven by solid sales of Sunrise in the U.S. and international markets.
Allscripts Healthcare Solutions, Inc. Price, Consensus and EPS Surprise
Allscripts Healthcare Solutions, Inc. Price, Consensus and EPS Surprise | Allscripts Healthcare Solutions, Inc. Quote
Revenue Details
Software delivery, support and maintenance revenue: This segment consists of all software, hardware, subscription, other transactions and support and maintenance revenues. According to management, revenues from the segment increased 19% to $273 million in the quarter.
Client services revenue: This segment consists of recurring managed services and other project-based client services revenues. Client service revenues were up 22% on a year-over-year basis to $142 million.
Recurring revenue: This segment consists of subscriptions, recurring transactions, support and maintenance and recurring managed services. Recurring revenues increased 23% on a year-over-year basis.
Non-recurring revenue: This segment comprises systems sales and other project-based client service revenues. Non-recurring revenues increased 11% on a year-over-year basis.
Margin Details
Allscripts registered a gross margin of 43.2% in the first quarter compared with 44.0% in the year-ago quarter.
Adjusted operating expenses in the quarter totaled $141 million, reflecting an 18% year over year increase.
Guidance
For the full year, the company expects revenues between $1.71 billion and $1.74 billion, implying growth of 8–10%. Adjusted earnings per share are expected to grow in the band of 10% to 15%.
Zacks Rank & Stocks to Consider
Allscripts’ has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector include Neovasc Inc. , Hologic, Inc. (HOLX - Free Report) and Sunshine Heart Inc . Neovasc and Hologic sport a Zacks Rank #1 (Strong Buy), while Sunshine Heart holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 32.8%.
Sunshine Heart deliver a positive earnings surprise of 58.24% in the last quarter. The stock recorded a stellar EPS growth rate (last 3–5 years of actual earnings) of 22%.
Neovasc has seen a stellar gain of 14% over the last three months. The company projects sales growth of 102.88% for the current year.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>