Cerner Corp.'s (CERN) second-quarter profit jumped 30% on a
double-digit pop on its top line and a surge in bookings.
The health care information-technology company again lifted its
current-year forecast, calling for $1.80 to $1.83 a share on $2.09
billion to $2.12 billion in revenue. For the current quarter,
Cerner sees earnings of 46 cents to 48 cents on $520 million to
$540 million in revenue, bracketing the 47 cents and $528 million
expected by analysts polled by Thomson Reuters.
The company, whose technology is the backbone of many hospitals'
IT systems, has been expected to benefit from federal government
spending to encourage health professionals and hospitals to make
their records electronic.
"We expect our market opportunity to remain robust for years to
come as we benefit from demand driven by stimulus, health care
reform, and other regulatory requirements," said Chief Executive
Neap Patterson.
The company reported a profit of $72 million, or 42 cents a
share, up from $55.5 million, or 33 cents a share, a year earlier.
Excluding share-based compensation expense, earnings rose to 44
cents a share from 35 cents.
The number of shares and the per share amounts reflect a
two-for-one stock split effective June 24.
Revenue jumped 15% to $524.2 million. Cerner had forecast
per-share earnings of 83 cents to 87 cents, before the split, on
$505 million to $520 million in revenue.
Bookings totaled $649.9 million, a 39% increase from a year
earlier. Total revenue backlog rose 21%.
Earlier Thursday, Cerner said it had struck a deal with
HealthSouth Corp. (HLS) to digitize care processes across the
company's 97 inpatient rehabilitation facilities, a move that
Robert W. Baird & Co. analysts called "a material win."
Shares were up 1.9% to $81.10 in after-hours trading and have
risen 13% so far this year.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207; mia.lamar@dowjones.com