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Cerner Third Quarter Earnings
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CERN
Cerner (Nasdaq:CERN) announced its results for the most recent quarter on October 25, 2012. Cerner Corporation designs and supports healthcare devices, healthcare information technology, and content solutions for organizations and consumers.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: Can Earnings Guidance Accurately Predict The Future?
The Numbers: Cerner managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported adjusted net income of 60 cents per share versus the 55 cents per share estimate and revenues of $676.5 million versus the $638.1 million estimate. Revenue climbed 18.3% from the same period last year. Cerner has averaged revenue growth of 23.4% over the past five quarters. The company's net income for the quarter rose 25.4% to $98.9 million. Last quarter marked the third in a row of rising net income.
Management Quote: "I am very pleased with our results, which were strong across the board and included Cerner adding several new clients in the U.S. and around the world," Neal Patterson, Cerner chairman, CEO, president and co-founder said. "We also made great progress at rolling out new cloud-based solutions that significantly enhance the way physicians interact with information technology and allow them to be more productive. In addition, we continued to advance our platform for population health and data analytics solutions that will be critical as health care providers face changes in reimbursement that require them to become accountable for the health of populations."
A Look Back: Net income has increased 31.4% year-over-year on average across the last five quarters. The biggest gain came in the first quarter, when income climbed 37.4% from the year-earlier quarter.
Looking Ahead: When earnings estimates stay consistent leading up to earnings season, this usually shows analysts accurately predicted earnings estimates and business is stable. Be cautious though as this may also be a warnings sign that earnings could come at a huge surprise to the upside or downside as analyst did not correctly predict earnings. Steady earnings estimates mean there is not enough change going on with the company to make analysts change their opinions. When earning estimates are steady, investors can look at the revenue trend for a more fundamental indicator. The average estimate for the fiscal year is $2.22 per share, down from $2.23 90 days ago.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: Can Earnings Guidance Accurately Predict The Future?
The Numbers: Cerner managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported adjusted net income of 60 cents per share versus the 55 cents per share estimate and revenues of $676.5 million versus the $638.1 million estimate. Revenue climbed 18.3% from the same period last year. Cerner has averaged revenue growth of 23.4% over the past five quarters. The company's net income for the quarter rose 25.4% to $98.9 million. Last quarter marked the third in a row of rising net income.
Management Quote: "I am very pleased with our results, which were strong across the board and included Cerner adding several new clients in the U.S. and around the world," Neal Patterson, Cerner chairman, CEO, president and co-founder said. "We also made great progress at rolling out new cloud-based solutions that significantly enhance the way physicians interact with information technology and allow them to be more productive. In addition, we continued to advance our platform for population health and data analytics solutions that will be critical as health care providers face changes in reimbursement that require them to become accountable for the health of populations."
A Look Back: Net income has increased 31.4% year-over-year on average across the last five quarters. The biggest gain came in the first quarter, when income climbed 37.4% from the year-earlier quarter.
Looking Ahead: When earnings estimates stay consistent leading up to earnings season, this usually shows analysts accurately predicted earnings estimates and business is stable. Be cautious though as this may also be a warnings sign that earnings could come at a huge surprise to the upside or downside as analyst did not correctly predict earnings. Steady earnings estimates mean there is not enough change going on with the company to make analysts change their opinions. When earning estimates are steady, investors can look at the revenue trend for a more fundamental indicator. The average estimate for the fiscal year is $2.22 per share, down from $2.23 90 days ago.
by
Investopedia Staff
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