Advertisement
Singapore markets open in 4 hours 18 minutes

  • Straits Times Index

    3,287.75
    -5.38 (-0.16%)
     

  • S&P 500

    5,048.42
    -23.21 (-0.46%)
     

  • Dow

    38,085.80
    -375.12 (-0.98%)
     

  • Nasdaq

    15,611.76
    -100.99 (-0.64%)
     

  • Bitcoin USD

    64,812.25
    +815.83 (+1.27%)
     

  • CMC Crypto 200

    1,396.81
    +14.24 (+1.03%)
     

  • FTSE 100

    8,078.86
    +38.48 (+0.48%)
     

  • Gold

    2,343.90
    +5.50 (+0.24%)
     

  • Crude Oil

    83.81
    +1.00 (+1.21%)
     

  • 10-Yr Bond

    4.7060
    +0.0540 (+1.16%)
     

  • Nikkei

    37,628.48
    -831.60 (-2.16%)
     

  • Hang Seng

    17,284.54
    +83.27 (+0.48%)
     

  • FTSE Bursa Malaysia

    1,569.25
    -2.23 (-0.14%)
     

  • Jakarta Composite Index

    7,155.29
    -7,174.53 (-50.07%)
     

  • PSE Index

    6,574.88
    +2.13 (+0.03%)
     

Cerner shares slip following 4Q report and outlook

Cerner's 4th-qtr results and guidance and similar to Wall Street estimates, but shares slump

Associated Press

NEW YORK (AP) -- Shares of Cerner slumped Wednesday after the health care information technology company posted its fourth-quarter results and gave its first estimates for the new year.

THE SPARK: Cerner said Tuesday that it earned 39 cents per share in the fourth quarter if one-time costs, such as a litigation charge, are excluded. That's up from 34 cents per share a year ago. Its revenue grew 12 percent to $795.3 million as support, maintenance and service revenue climbed.

FactSet says analysts expected Cerner to report adjusted net income of 39 cents per share in net income and $795.7 million in revenue.

The legal settlement charge totaled $68 million. Cerner's support, maintenance and service revenue grew 19 percent to $531.1 million, but revenue from system sales fell 2 percent to $245.8 million.

ADVERTISEMENT

THE BIG PICTURE: Cerner Corp. said it earned $1.41 per share in 2013 if one-time charges and gains are excluded. That's up from $1.20 per share in 2012. Revenue grew 9 percent to $2.91 billion.

For 2014 the Kansas City, Mo., company forecast net income of $1.62 to $1.67 per share excluding one-time costs and stock-based compensation, which is expected to total 11 to 12 cents per share. Cerner said it should report $3.2 billion to $3.4 billion in revenue.

Analysts expect net income of $1.67 per share and $3.35 billion in revenue on average.

In the fourth quarter Cerner booked $1.11 billion worth of contracts, up 9 percent from the fourth quarter of 2012. The company said its bookings grew 20 percent in 2013.

THE ANALYSIS: Cowen and Co. analyst Charles Rhyee said the company is taking a larger and larger position in the market, but its fourth-quarter results and guidance suggest that its bookings growth is slowing down. He said that could hurt the stock.

Rhyee rates Cerner stock "Market Perform" with a price target of $52 per share.

SHARE ACTION: Shares of Cerner declined $2.64, or 4.7 percent, to $53.96 in afternoon trading. The stock has risen 29 percent over the last year. In October it set an all-time high of $59.42.