NEW YORK (TheStreet) -- Shares of Cerner (CERN) were falling 6.65% to $53.51 on heavy trading volume early-afternoon Wednesday as the health care information technology company late yesterday reported lower-than-expected results for the 2016 third quarter and issued fourth-quarter guidance that was below Wall Street's estimates.
After yesterday's closing bell, Cerner posted adjusted earnings of 59 cents per share, missing analysts' expectations by a penny. Revenue rose 5% year-over-year to $1.18 billion, but fell short of Wall Street's estimated $1.24 billion.
Bookings fell 10% year-over-year during the quarter to $1.43 billion, which was below Cerner's guidance of $1.45 billion to $1.60 billion. The FactSet consensus was $1.51 billion.
For the fourth-quarter, Kansas City, MO-based Cerner expects to report adjused earnings in the range of 60 cents to 62 cents per share. Analysts surveyed by FactSet are looking for adjusted earnings of 65 cents per share.
Revenue is forecast to be between $1.23 billion and $1.30 billion, while the FactSet consensus is $1.32 billion.
R.W. Baird subsequently downgraded its stock rating to "neutral" from "outperform," according to the Wall Street Journal.
The firm also cut its price target to $58 from $68.
Leerink trimmed its price target to $65 from $70 but maintained its "outperform" rating on the stock.
Despite the company's disappointing earnings, revenue and bookings, the firm said Cerner's preliminary 2017 guidance looks "decent," according to TheFly.
Cerner expects to report adjusted earnings of $2.50 to $2.70 cents per share for 2017, while the FactSet consensus is $2.69. Revenue is forecast to be between $5.20 and $5.45 billion vs. the FactSet consensus of $5.42 billion.