DOW JONES NEWSWIRES
Cerner Corp.'s (CERN) fourth-quarter profit rose 17%, with
adjusted results topping the company's forecast, as demand
continued to rise for health-care information-technology
services.
For the first quarter, the health-care information-technology
company estimated per-share earnings of 73 cents to 77 cents on
revenue of $475 million to $490 million. Analysts polled by Thomson
Reuters expected 76 cents and $485 million, respectively.
The company also projected full-year earnings of $3.50 to $3.60
a share on revenue of $2.05 billion to $2.1 billion. Wall Street
estimated $3.54 and $2.09 billion, respectively.
Chairman and Chief Executive Neal Patterson on Tuesday said the
results reflect strong performance in what Cerner believes is the
beginning of a "multi-year period of increased demand for our
solutions and services driven by stimulus, health-care reform and
other regulatory requirements."
Cerner, whose technology is the backbone for many hospitals' IT
systems, saw results improve throughout 2010 on growing revenue. It
is expected to benefit as the federal government may spend as much
as $27.4 billion between 2011 and 2021 to encourage health
professionals and hospitals to make their health records
electronic. However, Cerner and others will face increased
competition as the amount of money available attracts bigger
companies to the sector.
For the latest quarter, Cerner reported a profit of $70.6
million, or 82 cents a share, up from $60.5 million, or 71 cents a
share, a year earlier. Excluding stock-based compensation, earnings
rose to 87 cents from 75 cents as revenue grew 7.3% to $500.2
million.
In October, the company forecast per-share earnings of 80 cents
to 85 cents a share on revenue of $490 million to $510 million.
Bookings totaled $626.2 million, down 8% from the all-time high
achieved last year, but significantly above Cerner's guidance of
$490 million to $530 million. Total backlog rose 17% on the
year.
Shares rose 1.4% to $102 in after-hours trading.
-By John Kell and Lee Roberts, Dow Jones Newswires;
212-416-2480; john.kell@dowjones.com