Cerner Corp.'s (CERN) first-quarter profit climbed 28%, topping
the company's guidance, as bookings and backlog surged.
The health-care information-technology company Thursday raised
its current-year earnings per share forecast to $3.55 to $3.62 from
$3.50 to $3.60 and its revenue view to $2.07 billion to $2.12
billion from its earlier expectation of $2.05 billion to $2.1
billion.
It forecast a second-quarter profit of 83 cents to 87 cents a
share on $505 million to $520 million in revenue. Analysts had
anticipated 85 cents and $513 million, respectively, according to a
Thomson Reuters poll.
The company, whose technology is the backbone of many hospitals'
IT systems, has continued to report earnings growth on higher
demand. It is expected to benefit from federal government spending
to encourage health professionals and hospitals to make their
records electronic. Though it may face increased competition as the
robust market attracts bigger companies to the sector.
Cerner reported a profit of $64.6 million, or 75 cents a share,
in the first quarter, up from $50.3 million, or 59 cents a share, a
year earlier. Excluding stock-compensation expense, earnings rose
to 80 cents a share from 63 cents. Revenue rose 14% to $491.7
million.
Earlier this month, the company said it expected results to be
"at or above" its February guidance of a 73- to 77-cent profit on
$475 million to $490 million in revenue.
Bookings totaled $524.9 million, up 30%. Backlog rose 19% on the
year.
Shares edged up 0.8% to $113 in after-hours trading and have
climbed 18% so far this year.
-By Matt Jarzemsky and Lauren Pollock, Dow Jones Newswires;
212-416-2356; lauren.pollock@dowjones.com