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Cerner finishes higher on Q2 beat, good Q3 guidance

Jul. 25, 2014 5:48 PM ETOracle Corporation (ORCL) StockBy: Eric Jhonsa, SA News Editor1 Comment
  • Cerner (NASDAQ:CERN +2.2%) is at levels last seen in early April after delivering a solid Q2 beat. The healthcare tech giant expects Q3 revenue of $840M-$870M, mostly above an $842.7M consensus. But full-year guidance is in-line: revenue of $3.3B-$3.4B and EPS of $1.64-$1.67 vs. a consensus of $3.35B and $1.66.
  • Bookings rose 15% Y/Y in Q2 to $1.08B, soundly exceeding revenue of $851.8M (+20%). Q3 bookings are expected to total $1B-$1.1B, up from $928M a year earlier. Cerner's backlog was $9.69B at the end of Q2 (+21% Y/Y).
  • Gross margin fell 130 bps Y/Y to 80.9%, something Cerner blamed during the CC (transcript) on a higher mix of 3rd-party services. Opex rose 19% to $483M.
  • Systems revenue grew 17%, and services revenue 28%. U.S. sales rose 24%, while international sales fell 4%; Cerner blames the latter on contract timings.
  • Q2 results, PR

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