We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cerner (CERN) Q2 Earnings Beat Estimates, Revenues Miss
Read MoreHide Full Article
Cerner Corporation delivered second-quarter 2019 adjusted earnings of 66 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 3.1%. The bottom line also improved from the prior-year quarter’s figure by 6.5%.
The Zacks Rank #2 (Buy) company reported revenues of $1.43 billion, which increased 4.6% year over year but missed the Zacks Consensus Estimate of $1.44 billion by 0.4%.
Revenues by Geography
Per management, U.S. revenues grossed $1.27 billion, up 5% from the prior-year quarter.
Non-U.S. revenues remained flat from the year-ago quarter figure at $165 million. Per management, Cerner’s international revenue growth was impacted by foreign exchange rates.
Cerner Corporation Price, Consensus and EPS Surprise
In the reported quarter, the company’s bookings totaled $1.43 billion, down from $1.78 billion in the same quarter of the last year.
Segmental Performance
Licensed software revenues shot up 14.3% to $197.1 million, driven by strong bookings and growth in both traditional software and SaaS offerings.
Technology resale revenues were $60.7 million, down 19.3% on a year-over-year basis.
Revenues from Subscriptions grossed $89.8 million, up 8.2% year over year.
Professional services’ revenues totaled $485.3 million, up 8.5% from the prior-year quarter number, on the back of solid growth in implementation services.
Revenues at the Managed services unit summed $297.7 million, up 4.2% from the prior-year quarter.
Support and maintenance revenues were $276.4 million, down 0.9% year over year.
Reimbursed travel revenues amounted to $24.1 million, reflecting a year-over-year decline of 4.9%.
Margins
In the quarter under review, gross profit summed $1.16 billion, up 3% year over year. Gross margin was 81.2%, down 130 bps on a year-over-year basis.
General and administrative expenses increased 56.9% to $149.8 million. Further, software development expenses rose 7.6% to $181 million.
Adjusted operating margin contracted 68 bps to 18% during the reported quarter.
Guidance
For the third quarter of 2019, Cerner expects revenues between $1.41 billion and $1.46 billion. The Zacks Consensus Estimate for revenues stands at $1.44 billion, towards the upper end of management’s guided range.
Adjusted earnings per share are expected between 65 cents and 67 cents. The Zacks Consensus Estimate stands at 69 cents, above the company’s guided range.
Cerner maintained 2019 revenue guidance. The company continues to expect revenues between $5.65 billion and $5.85 billion. The Zacks Consensus Estimate for revenues in 2019 stands at $5.74 billion, within the company’s guided range.
The company reiterated 2019 earnings per share outlook. The company continues to project the metric to be $2.64-$2.72 per share. The Zacks Consensus Estimate for earnings stands at $2.67, within the company’s estimated range.
Wrapping Up
Cerner exited the second quarter on a mixed note. The company continues to witness strong contributions from key areas like Population Health, Revenue Cycle and IT Works. Further, gains in Licensed software, Professional and Managed Services units buoy optimism. International revenues also moved up in the quarter.
The company is likely to benefit from electronic health record (EHR), electronic patient record (EPR) or electronic medical record (EMR) platforms that provide patient care in acute inpatient and outpatient settings.
Meanwhile, Technology Resale, Support & Maintenance and Reimbursement Travel revenues witnessed a year-over-year decline in the quarter under review. Bookings also fell in the reported quarter, which is concerning. Contraction in operating margins also remains a concern. Furthermore, competition in the global MedTech space is a woe.
Other Stocks to Consider
Some other top-ranked stocks in the broader medical space are Hologic Inc. (HOLX - Free Report) , DENTSPLY SIRONA Inc. (XRAY - Free Report) and Teleflex Inc. (TFX - Free Report) .
Hologic is scheduled to release second-quarter 2019 results on Jul 31. The Zacks Consensus Estimate for the to-be-reported quarter’s adjusted EPS is pegged at 61 cents and the same for revenues stands at $834.6 million. The stock carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DENTSPLY SIRONA is scheduled to release second-quarter 2019 results on Aug 2. The Zacks Consensus Estimate for second-quarter adjusted EPS and revenues is 62 cents and $1.03 billion, respectively. The stock sports a Zacks Rank #1.
Teleflex is expected to release second-quarter 2019 results on Aug 1. The Zacks Consensus Estimate for adjusted EPS for the to-be-reported quarter is $2.59 and the same for revenues is pegged at $636.7 million. The stock has a Zacks Rank of 2.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119%and +164%gains in as little as 1 month.
Image: Bigstock
Cerner (CERN) Q2 Earnings Beat Estimates, Revenues Miss
Cerner Corporation delivered second-quarter 2019 adjusted earnings of 66 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 3.1%. The bottom line also improved from the prior-year quarter’s figure by 6.5%.
The Zacks Rank #2 (Buy) company reported revenues of $1.43 billion, which increased 4.6% year over year but missed the Zacks Consensus Estimate of $1.44 billion by 0.4%.
Revenues by Geography
Per management, U.S. revenues grossed $1.27 billion, up 5% from the prior-year quarter.
Non-U.S. revenues remained flat from the year-ago quarter figure at $165 million. Per management, Cerner’s international revenue growth was impacted by foreign exchange rates.
Cerner Corporation Price, Consensus and EPS Surprise
Cerner Corporation price-consensus-eps-surprise-chart | Cerner Corporation Quote
Bookings
In the reported quarter, the company’s bookings totaled $1.43 billion, down from $1.78 billion in the same quarter of the last year.
Segmental Performance
Licensed software revenues shot up 14.3% to $197.1 million, driven by strong bookings and growth in both traditional software and SaaS offerings.
Technology resale revenues were $60.7 million, down 19.3% on a year-over-year basis.
Revenues from Subscriptions grossed $89.8 million, up 8.2% year over year.
Professional services’ revenues totaled $485.3 million, up 8.5% from the prior-year quarter number, on the back of solid growth in implementation services.
Revenues at the Managed services unit summed $297.7 million, up 4.2% from the prior-year quarter.
Support and maintenance revenues were $276.4 million, down 0.9% year over year.
Reimbursed travel revenues amounted to $24.1 million, reflecting a year-over-year decline of 4.9%.
Margins
In the quarter under review, gross profit summed $1.16 billion, up 3% year over year. Gross margin was 81.2%, down 130 bps on a year-over-year basis.
General and administrative expenses increased 56.9% to $149.8 million. Further, software development expenses rose 7.6% to $181 million.
Adjusted operating margin contracted 68 bps to 18% during the reported quarter.
Guidance
For the third quarter of 2019, Cerner expects revenues between $1.41 billion and $1.46 billion. The Zacks Consensus Estimate for revenues stands at $1.44 billion, towards the upper end of management’s guided range.
Adjusted earnings per share are expected between 65 cents and 67 cents. The Zacks Consensus Estimate stands at 69 cents, above the company’s guided range.
Cerner maintained 2019 revenue guidance. The company continues to expect revenues between $5.65 billion and $5.85 billion. The Zacks Consensus Estimate for revenues in 2019 stands at $5.74 billion, within the company’s guided range.
The company reiterated 2019 earnings per share outlook. The company continues to project the metric to be $2.64-$2.72 per share. The Zacks Consensus Estimate for earnings stands at $2.67, within the company’s estimated range.
Wrapping Up
Cerner exited the second quarter on a mixed note. The company continues to witness strong contributions from key areas like Population Health, Revenue Cycle and IT Works. Further, gains in Licensed software, Professional and Managed Services units buoy optimism. International revenues also moved up in the quarter.
The company is likely to benefit from electronic health record (EHR), electronic patient record (EPR) or electronic medical record (EMR) platforms that provide patient care in acute inpatient and outpatient settings.
Meanwhile, Technology Resale, Support & Maintenance and Reimbursement Travel revenues witnessed a year-over-year decline in the quarter under review. Bookings also fell in the reported quarter, which is concerning. Contraction in operating margins also remains a concern. Furthermore, competition in the global MedTech space is a woe.
Other Stocks to Consider
Some other top-ranked stocks in the broader medical space are Hologic Inc. (HOLX - Free Report) , DENTSPLY SIRONA Inc. (XRAY - Free Report) and Teleflex Inc. (TFX - Free Report) .
Hologic is scheduled to release second-quarter 2019 results on Jul 31. The Zacks Consensus Estimate for the to-be-reported quarter’s adjusted EPS is pegged at 61 cents and the same for revenues stands at $834.6 million. The stock carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DENTSPLY SIRONA is scheduled to release second-quarter 2019 results on Aug 2. The Zacks Consensus Estimate for second-quarter adjusted EPS and revenues is 62 cents and $1.03 billion, respectively. The stock sports a Zacks Rank #1.
Teleflex is expected to release second-quarter 2019 results on Aug 1. The Zacks Consensus Estimate for adjusted EPS for the to-be-reported quarter is $2.59 and the same for revenues is pegged at $636.7 million. The stock has a Zacks Rank of 2.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119%and +164%gains in as little as 1 month.
Click here to see these breakthrough stocks now >>