Healthcare service provider Cerner Corp. (CERN), Wednesday reported a 27% increase in its second quarter profit, helped by higher system sales and improved support, maintenance and services revenues. On an adjusted basis, earnings surpassed estimates by a penny, while revenues came in above.
Looking ahead, Cerner said it expects third quarter earnings to come in line with estimates and also raised its full year forecast from the prior range.
The North Kansas City, Missouri-based company's net earnings for the quarter increased 26.8% to $55.48 million or $0.65 per share from $43.75 million or $0.52 per share in the same quarter a year ago.
Excluding share-based compensation expenses and other items, adjusted net earnings were $59.15 million or $0.69 per share, up 29% from the prior year's $46.0 million or $0.55 per share.
On average, twenty-two analysts polled by Thomson Reuters expected earnings of $0.68 per share for the quarter. Analysts' estimate typically excludes one-time items.
Revenues for the second quarter rose 13% to $456.00 million from $403.81 million in the same quarter a year ago, beating Street estimates of $449.33 million. From the sequential first quarter, revenues were up 5.7%.
System sales increased to $135.90 million from $114.30 million, while support, maintenance and services rose to $311.58 million from $281.44 million. Reimbursed travel were down at $8.52 million.
Total operating expenses for the quarter increased to $291.44 million from $270.76 million in the corresponding quarter a year ago. Operating earnings were up at $86.35 million, compared to $66.16 million in the same quarter last year.
Amongst others in the industry, Management consultants Accenture (ACN), in its third quarter, reported a profit that increased, helped essentially by robust demand for its products and financial service operations. Accenture's net income attributable to the company rose 10.50% to $490.60 million or $0.73 per share, while revenues increased 7.9% to $5.98 billion.
Looking ahead to the third quarter, the company said it expects adjusted earnings in a range of $0.71 - $0.76 per share and revenues in a range of $455 million - $470 million. Analysts' currently anticipate earnings of $0.74 per share on revenues of $465.39 million for the quarter.
For the full year 2010, adjusted earnings are now expected to be in a range of $2.85 - $2.92 per share, up from the prior range of $2.80 and $2.90. Analysts' currently sees earnings of $2.88 per share.
Revenues are now expected to be in a range of $1.83 billion - $1.875 billion, up from the prior range of $1.80 billion and $1.875 billion. Street analysts' currently expects revenues of $1.85 billion.
On July 22, 2010, brokerage Jefferies upgraded company shares to 'Hold' from 'Buy,' with a mean target of $88.07.
CERN closed Wednesday's regular trading at $75.31, down $1.33 or 1.74%, on a volume of 0.85 million shares. In the last 52-week period, the stock traded in a range of $61.01 - $92.95, with a three-month average volume of 1.12 million shares.
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