In a report released today, Mohan Naidu from Oppenheimer maintained a Hold rating on Cerner Corp (CERN). The company’s shares closed yesterday at $55.41.
Naidu observed:
“Cerner reported strong bookings at $1.96B for Q4, which is the second highest in the company’s history. But revenues in the quarter came in lower than expected due to weak tech resale and license software revenues in the qtr. While the CY19 revenue guidance is within the range of expectations, adj. EPS guidance came in lower ($2.57-2.67 vs. our prior $2.68 est) due to the lack of expected operating margin improvements. Mgmt. noted that the current backlog provides 85% coverage for FY19 guidance and the implied revenue growth of 7% at mid-point is respectable but limited margin improvement is likely disappoint and pull the consensus down. Dividend announcement ($0.15/qtr, ~1% yield) will attract new segment of investors and likely support current valuation.”
According to TipRanks.com, Naidu is a 5-star analyst with an average return of 11.5% and a 55.6% success rate. Naidu covers the Services sector, focusing on stocks such as Tivity Health Inc, Evolent Health, and Premier Inc.
Currently, the analyst consensus on Cerner Corp is a Moderate Buy with an average price target of $68.
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Cerner Corp’s market cap is currently $18.25B and has a P/E ratio of 22.16. The company has a Price to Book ratio of 3.60.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock.
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Cerner Corp. designs, develops, markets, installs, hosts and supports health care information technology, health care devices, hardware and content solutions for health care organizations and consumers. The company also provides value-added services, including implementation and training, remote hosting, operational management services, revenue cycle services, support and maintenance, health care data analysis, clinical process optimization, transaction processing, employer health centers, employee wellness programs and third party administrator services for employer-based health plans. It operates through the following segments: Domestic and Global. The Domestic segment includes revenue contributions and expenditures associated with business activity in the United States. The Global segment includes revenue contributions and expenditures linked to business activity in Aruba, Australia, Austria, the Bahamas, Belgium, Bermuda, Brazil, Canada, Cayman Islands, Chile, Denmark, Egypt, England, Finland, France, Germany, Guam, India, Ireland, Kuwait, Luxembourg, Malaysia, Mexico, Netherlands, Norway, Portugal, Qatar, Romania, Saudi Arabia, Singapore, Slovakia, Spain, Sweden, Switzerland and the United Arab Emirates. The company was founded by Neal L. Patterson, Clifford W. Illig and Paul N. Gorup in 1979 and is headquartered in North Kansas City, MO.
