S&P 500 (NYSE:SPY) component Cerner (NASDAQ:CERN) will unveil its latest earnings on Thursday, July 26, 2012. Cerner Corporation designs and supports healthcare devices, healthcare information technology, and content solutions for organizations and consumers.
Cerner Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of 51 cents per share, a rise of 21.4% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 23.9% versus last year to $2.18.
Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting net income of 51 cents per share, and the previous quarter, it had profit of 53 cents.
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A Look Back: In the first quarter, profit rose 37.4% to $88.7 million (51 cents a share) from $64.6 million (38 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 30.4% to $641.2 million from $491.7 million.
Wall St. Revenue Expectations: Analysts are projecting a rise of 21.7% in revenue from the year-earlier quarter to $638.1 million.
Stock Price Performance: Between April 25, 2012 and July 20, 2012, the stock price rose $4.26 (5.9%), from $72.76 to $77.02. The stock price saw one of its best stretches over the last year between April 24, 2012 and May 2, 2012, when shares rose for seven straight days, increasing 14.9% (+$10.74) over that span. It saw one of its worst periods between October 24, 2011 and November 1, 2011 when shares fell for seven straight days, dropping 9.2% (-$6.32) over that span.
With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 23% over the last four quarters.
After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 29.5% in the third quarter of the last fiscal year and 29.1% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
Analyst Ratings: With 11 analysts rating the stock a buy, one rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.59 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 3.42 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 5.9% to $1.59 billion while liabilities rose by 1.1% to $443.5 million.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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