Cerner Hits and Misses in 1Q

HDM Breaking News, April 29, 2009

Cerner Corp.'s stock value rose 8.5% in afternoon trading on April 29 after the software vendor announced first quarter financial results that exceeded investment analyst expectations for profit but missed on revenue.

The Kansas City, Mo.-based company saw net income rise 11% to $40.8 million compared to the same period a year ago. Adjusted earnings per share of 52 cents beat expectations by a penny. Quarterly revenue increased 2% to $392.3 million but analysts had expected about $418 million.

But investors apparently liked Cerner's financial guidance for the rest of the year that is in line with expectations, and its bullish talk about the economic stimulus law's information technology provisions.

Those provisions "could represent the largest opportunity in the history of our industry," said Neal Patterson, chair and CEO. He added it likely will be later in the year before activity related to the provisions starts to impact Cerner's business, but the company is well positioned to benefit.

More information is available at cerner.com.

--Joseph Goedert

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