Cerner Q1 Results Fall Short of Analyst Expectations

Cerner Corp., which is battling privately-held Epic Systems for supremacy in the electronic health records market, had good revenue numbers in the first quarter of 2015 yet still did not match investment analysts’ expectations.

Quarterly revenue of $996.1 million increased 27 percent over the first quarter in 2014, but was short of the $1.09 billion consensus figure of analysts. “Revenue was below guidance provided by the company due to a combination of lower than expected revenue from our recently closed acquisition of Siemens Health Services, and lower revenue in our existing business,” according to a Cerner statement.

Also See: EHR Market to Grow Even as Meaningful Use Fades

The company noted that lower revenue did not materially impact profitability and adjusted earnings per share met expectations of 45 cents. Bookings hit an all-time record for the company of $1.20 billion, up 32 percent over 2014’s first quarter. The company’s total backlog stands at $13 billion.

The most recent guidance from Cerner on second quarter performance calls for revenue of $1.175-$1.225 billion, bookings $1.2-$1.3 billion and adjusted earnings per share of 51-52 cents.

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