Earnings from Fiserv and Cerner

After the closing bell, we got two more Buy List earnings reports. Fiserv (FISV), the financial services firm, reported Q2 earnings of $1.08 per share which beat estimates by one penny. That’s an increase of 14% over last year’s Q2. So far, Fiserv has earned $2.14 per share for the first two quarters of this year.

Overall, this was a solid quarter from Fiserv:

“Our second quarter results were highlighted by strong growth in the Payments segment leading to double-digit gains in adjusted EPS,” said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. “Strong sales results in the quarter should add to our momentum in the second half of the year.”

Fiserv is confident enough to raise its full-year range. The old range was $4.32 to $4.44 per share. The new range is $4.38 to $4.45 per share. To add context, Fiserv earned $3.87 per share last year.

Cerner (CERN) reported Q2 earnings of 58 cents per share which was also a penny better than expectations. The company had given guidance of 56 to 59 cents per share. Quarterly revenues rose 8.0% to $1.22 billion which narrowly beat estimates.

“Cerner’s strong second quarter results reflect good execution and competitiveness in the U.S. and abroad,” said Zane Burke, Cerner President. “We continued to gain share in what remains an active Electronic Health Record replacement market, while also having strong sales of revenue cycle and population health solutions that help our clients navigate the rapidly evolving reimbursement landscape.”

For Q3, Cerner sees earnings ranging between 59 and 61 cents per share. The Street had been expecting 61 cents per share. The company reiterated its full-year guidance of $2.30 to $2.40 per share, but they lowered their full-year revenue guidance to $4.9 billion to $5.0 billion. The previous range was $4.9 billion to $5.1 billion.

Posted by on August 2nd, 2016 at 5:02 pm


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