Cerner Earns 71 Cents per Share

After the closing bell, Cerner (CERN) reported Q1 earnings of 71 cents per share. Wall Street had been expecting 70 cents per share.

Quarterly revenues rose 2% to $1.41 billion. That was slightly below the company’s expectations. Cerner cited travel restrictions implemented by the company in response to the pandemic.

For Q1, Cerner had operating cash flow of $284 million and free cash flow of $160 million. Cerner has a total backlog of $13.47 billion.

“I am pleased with our solid first quarter results despite the initial impact of the COVID-19 pandemic,” said Brent Shafer, Chairman and CEO. “More importantly, I am proud of the efforts of Cerner associates as they quickly adapted to the challenges presented by the pandemic while maintaining an unwavering focus on supporting our clients on the frontlines. While we expect the pandemic to continue affecting our results, we currently believe that the largest impact will occur in second quarter 2020 and expect resiliency in our future financial performance.”

Now for guidance.

For Q2, Cerner sees revenue between $1.34 billion and $1.39 billion. For all of 2020, Cerner expects revenue between $5.55 billion and $5.70 billion. That’s down from the prior range of $5.725 billion to $5.975 billion.

Cerner expects EPS of 60 to 64 cents per share for Q2 and $2.78 to $2.90 for the full year. The latter forecast is down from $3.09 to $3.19.

The shares are down about 1% after hours.

Posted by on April 28th, 2020 at 4:16 pm


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