Cerner 2nd-quarter income rises 27 percent on higher bookings, revenue; co. lifts 2010 outlook

Wednesday, July 28, 2010

Cerner 2nd-quarter income climbs 27 percent

KANSAS CITY, Mo. — Health care information technology provider Cerner Corp. said Wednesday that its second-quarter earnings rose 27 percent on higher bookings and revenue.

The company reported net income of $55.5 million, or 65 cents per share, up from $43.7 million, or 52 cents per share, in the year-ago quarter. On an adjusted basis, earnings were 69 cents per share in the latest quarter.

Revenue rose 13 percent to $456 million from $403.8 million.

Analysts surveyed by Thomson Reuters expected income of 68 cents per share on $449.3 million of revenue.

Cerner said that bookings in the quarter rose 19 percent to $467.8 million, helped by new clients and the effects of federal stimulus spending, which includes money for health care IT.

Cerner raised its full-year earnings-per-share outlook to a range of $2.85 to $2.92 from a previous forecast of $2.80 to $2.90 per share. The company projects revenue of $1.83 billion to $1.88 billion.

Analysts predict 2010 earnings of $2.88 per share on revenue of $1.85 billion.

For the third quarter, Cerner expects income of 71 cents to 76 cents per share on revenue of $455 million to $480 million. Analysts estimate income of 74 cents per share on revenue of $465.4 million.

Shares of Cerner closed down $1.33 at $75.31.

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