Allscripts Healthcare Solutions (MDRX - Free Report) reported first-quarter 2020 adjusted earnings per share (EPS) of 9 cents, which missed the Zacks Consensus Estimate of 14 cents by 35.7%. The bottom line also declined 43.8% on a year-over-year basis.
Revenues totaled $416.7 million, which lagged the Zacks Consensus Estimate by 1.2%. Also, the top line fell 3.5% year over year.
For first-quarter 2020, bookings came in at $205 million, down 28.3% from the prior-year quarter.
The Provider segment consists of the 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 $263.6 million on a reported basis, down 4.3% from the year-ago quarter's tally.
At this segment, revenues totaled $153.1 million, down 2.2% from the year-ago quarter's figure.
Due to the current uncertainty owing to the COVID-19 pandemic, Allscripts is withdrawing its financial outlook for 2020.
Allscripts ended the first quarter on a weak note. The company maintains momentum in its Provider business on the back of key client wins . The company 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.
Meanwhile, the company witnessed a decline in its core Client Services and Software delivery unit revenues. 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 carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are Aphria Inc. (APHA - Free Report) , Biogen Inc. (BIIB - Free Report) and Eli Lilly and Company (LLY - Free Report) .
Aphria reported third-quarter fiscal 2020 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. The company carries a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.
Eli Lilly delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.
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