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Shares of Allscripts Healthcare Solutions (MDRX +0.00%), an information technology company focused on the healthcare industry, are up 11% as of 11:30 a.m. EDT. The double-digit gain is attributable to its release of mostly positive second-quarter results.
Here's a review of the key takeaways from the quarter:
Image source: Getty Images.
Mangement also reaffirmed its financial outlook for the year:
These figures line up well with Wall Street's estimate of $2.18 billion in total revenue and $0.77 in EPS.
Investors are bidding up the stock price in response to the generally positive results.
Allscripts Healthcare Solutions has badly underperformed the market over the last several years, so today's pop should come as welcome relief to its shareholders.
Looking ahead, Wall Street projects that the company's profits will grow in excess of 18% annually over the next five years. If that number proves to be anywhere close to reality, then the stock's current valuation of about 16 times next year's earnings estimates could prove to be attractive. However, given the company's poor track record of creating shareholder value, I thinks that approaching this stock with a wait-and-see mind-set makes the most sense. Investors who are interested in the healthcare information service stocks might want to consider looking elsewhere.