Cerner Co. (NASDAQ:CERN) Expected to Announce Earnings of $0.66 Per Share

Wall Street analysts predict that Cerner Co. (NASDAQ:CERN) will report earnings per share of $0.66 for the current quarter, according to Zacks Investment Research. Ten analysts have provided estimates for Cerner’s earnings, with the lowest EPS estimate coming in at $0.64 and the highest estimate coming in at $0.69. Cerner posted earnings per share of $0.63 in the same quarter last year, which would suggest a positive year-over-year growth rate of 4.8%. The firm is scheduled to report its next earnings report on Thursday, October 24th.

According to Zacks, analysts expect that Cerner will report full year earnings of $2.68 per share for the current financial year, with EPS estimates ranging from $2.64 to $2.70. For the next financial year, analysts expect that the company will post earnings of $3.19 per share, with EPS estimates ranging from $3.10 to $3.33. Zacks’ EPS calculations are an average based on a survey of research analysts that follow Cerner.

Cerner (NASDAQ:CERN) last announced its earnings results on Wednesday, July 24th. The company reported $0.60 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.58 by $0.02. Cerner had a net margin of 10.75% and a return on equity of 15.14%. The business had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.44 billion. During the same quarter in the previous year, the firm posted $0.62 earnings per share. Cerner’s revenue was up 4.6% compared to the same quarter last year.

Several brokerages have issued reports on CERN. Wells Fargo & Co boosted their price target on shares of Cerner from $72.00 to $80.00 and gave the company an “outperform” rating in a report on Thursday, July 25th. Argus raised shares of Cerner from a “hold” rating to a “buy” rating in a report on Thursday. ValuEngine raised shares of Cerner from a “hold” rating to a “buy” rating in a report on Wednesday, May 1st. KeyCorp reissued an “overweight” rating and issued a $82.00 price target (up previously from $76.00) on shares of Cerner in a report on Friday, August 16th. Finally, Piper Jaffray Companies boosted their price target on shares of Cerner from $74.00 to $80.00 and gave the company an “overweight” rating in a report on Thursday, July 25th. One analyst has rated the stock with a sell rating, four have given a hold rating and twelve have given a buy rating to the stock. Cerner presently has an average rating of “Buy” and an average price target of $73.79.

In related news, Director Linda M. Dillman sold 4,100 shares of the company’s stock in a transaction dated Thursday, May 30th. The shares were sold at an average price of $70.14, for a total transaction of $287,574.00. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, COO Michael Nill sold 244,000 shares of the company’s stock in a transaction dated Wednesday, May 29th. The stock was sold at an average price of $69.42, for a total transaction of $16,938,480.00. The disclosure for this sale can be found here. Insiders sold a total of 289,500 shares of company stock worth $20,225,008 in the last 90 days. 0.75% of the stock is owned by corporate insiders.

Hedge funds and other institutional investors have recently modified their holdings of the stock. Nelson Roberts Investment Advisors LLC bought a new position in Cerner in the 1st quarter worth about $25,000. Berman Capital Advisors LLC lifted its position in shares of Cerner by 115.3% in the second quarter. Berman Capital Advisors LLC now owns 381 shares of the company’s stock valued at $27,000 after acquiring an additional 204 shares in the last quarter. Advisory Alpha LLC bought a new stake in shares of Cerner in the first quarter worth about $28,000. Altshuler Shaham Ltd increased its holdings in shares of Cerner by 173.2% in the second quarter. Altshuler Shaham Ltd now owns 388 shares of the company’s stock worth $28,000 after purchasing an additional 246 shares during the last quarter. Finally, Creative Financial Designs Inc. ADV increased its holdings in shares of Cerner by 303.4% in the first quarter. Creative Financial Designs Inc. ADV now owns 710 shares of the company’s stock worth $41,000 after purchasing an additional 534 shares during the last quarter. Institutional investors and hedge funds own 81.87% of the company’s stock.

Shares of CERN stock opened at $72.03 on Friday. The firm has a market capitalization of $22.87 billion, a P/E ratio of 32.59, a price-to-earnings-growth ratio of 2.06 and a beta of 0.92. The company has a current ratio of 2.52, a quick ratio of 2.50 and a debt-to-equity ratio of 0.22. The firm’s fifty day simple moving average is $72.73 and its 200 day simple moving average is $65.82. Cerner has a 1 year low of $48.78 and a 1 year high of $76.47.

The company also recently announced a special dividend, which was paid on Friday, July 26th. Stockholders of record on Tuesday, June 18th were paid a $0.18 dividend. The ex-dividend date of this dividend was Monday, June 17th. Cerner’s dividend payout ratio is presently 32.58%.

About Cerner

Cerner Corporation provides health care information technology solutions and tech-enabled services in the United States and internationally. The company offers Cerner Millennium architecture, a person-centric computing framework, which includes clinical, financial, and management information systems that allow providers to access an individual's electronic health record (EHR) at the point of care, and organizes and delivers information for physicians, nurses, laboratory technicians, pharmacists, front- and back-office professionals, and consumers.

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