Cerner (Nasdaq: CERN ) is expected to report Q4 earnings on Feb. 5. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Cerner's revenues will expand 13.1% and EPS will grow 16.4%.
The average estimate for revenue is $696.5 million. On the bottom line, the average EPS estimate is $0.64.
Last quarter, Cerner recorded revenue of $676.5 million. GAAP reported sales were 18% higher than the prior-year quarter's $560.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.60. GAAP EPS of $0.56 for Q3 were 24% higher than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 79.6%, 90 basis points worse than the prior-year quarter. Operating margin was 22.3%, 80 basis points better than the prior-year quarter. Net margin was 14.9%, 80 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $2.65 billion. The average EPS estimate is $2.36.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 403 members out of 447 rating the stock outperform, and 44 members rating it underperform. Among 143 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 135 give Cerner a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cerner is outperform, with an average price target of $80.73.
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