Cerner (CERN) Stock Down in After-Hours Trading on Earnings Results
NEW YORK (TheStreet) -- Cerner (CERN) - Get Report stock is down by 9.97% to $59.50 in after-hours trading on Tuesday, after the healthcare IT company's 2015 third quarter earnings results were in-line with expectations.
After the market close on Tuesday, Cerner reported earnings of 54 cents per share on a 34% year over year increase in revenue to $1.13 billion.
Analysts surveyed by Thomson Reuters were expecting the company to report earnings of 54 cents per share on revenue of $1.17 billion.
"The highlight of our results in the third quarter was our strong bookings, which again included a record number of new clients joining Cerner," said Cerner CEO Neal Patterson. "We have signed more new clients in the first three quarters of 2015 than any full-year in our history, and I attribute this success to our strong competitive position in an active marketplace."
Cerner also announced its 2016 earnings guidance at $2.30 per share to $2.40 per share on revenue of more than $5 billion.
Separately, TheStreet Ratings team rates CERNER CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate CERNER CORP (CERN) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: CERN
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