After the company disappointing third-quarter results, shares of Allscripts Healthcare Solutions (NASDAQ:MDRX) fell 17% as of 11:53 a.m. EDT on Friday.
Here's a look at the key numbers from the period:
- Non-GAAP revenue grew 19% to $536 million. That was below the $549.4 million that Wall Street was expecting.
- The contract backlog grew 13% to $4.7 billion. However, that represents a sequential decline of $100 million, and its bookings of $246 million were well below the $304 million that was recorded in the year-ago period.
- GAAP net loss was $36 million.
- Non-GAAP net income was $31 million, or $0.18 per share. That was a penny shy of expectations.
Management stated that is now expects to hit the low end of its guidance range for the full year. As a reminder, that guidance calls for at least 17% growth in non-GAAP revenue and at least 16% growth in non-GAAP EPS.
Wall Street punished the stock because of its lower-than-hoped-for quarterly results and tepid guidance.
2018 is shaping up to be another tough year for shareholders. Shares are currently down more than 30% since January, which only extends this company's long history of destroying shareholder value.
Allscripts Healthcare Solutions is still expecting 2018 to be a year of financial growth, which could provide reasons to hold on to shares. However, I prefer to keep my capital in winning companies, so for that reason, I'm content to look elsewhere for investment opportunities.