Cerner Earns 63 Cents per Share

After yesterday’s close, Cerner (CERN) reported fiscal Q2 earnings of 63 cents per share. The range Cerner had given is was for earnings of 60 to 64 cents per share. Wall Street had been expecting 61 cents per share.

Overall, I’m pleased with these numbers. Cerner said that bookings were $1.34 billion, which was $100 above the high-end of the company’s guidance. Quarterly revenue fell 7% to $1.43 billion. That was $10 billion below the company’s expected range.

For the quarter, Cerner had operating cash flow of $259 million and free cash flow of $64 million. Total backlog now stands at $13.66 billion.

“Cerner’s solid results during the pandemic reflect the commitment of our associates, the importance of Cerner’s solutions, and the resiliency of our business model,” said Brent Shafer, Chairman and CEO. “Our clients are heroes on the frontlines providing health care, and I am proud of Cerner’s ability to support them. COVID19 has brought Cerner’s vision and mission to life and strengthened our belief that Cerner is well-positioned to play a key role in shaping the future of health care.”

Now for guidance. For Q3, Cerner expects revenue to range between $1.35 billion and $1.40 billion, and they expect full-year revenue between $5.45 billion and $5.55 billion. The latter range is a downgrade from their previous guidance.

For earnings, Cerner expects Q3 to range between 70 and 74 cents per share. For the whole year, they see earnings between $2.80 and $2.88 per share. The previous range was $2.78 to $2.90 per share. Wall Street had been expecting $2.83 per share.

Posted by on July 29th, 2020 at 4:23 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.