Cerner (Nasdaq: CERN) is expected to report Q3 earnings on Oct. 25. 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 grow 14.1% and EPS will grow 22.9%.
The average estimate for revenue is $652.5 million. On the bottom line, the average EPS estimate is $0.59.
Revenue details
Last quarter, Cerner reported revenue of $637.4 million. GAAP reported sales were 21% higher than the prior-year quarter's $512.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Last quarter, non-GAAP EPS came in at $0.59. GAAP EPS of $0.56 for Q2 were 33% higher than the prior-year quarter's $0.42 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Recent performance
For the preceding quarter, gross margin was 78.8%, 430 basis points worse than the prior-year quarter. Operating margin was 21.9%, 80 basis points better than the prior-year quarter. Net margin was 15.7%, 160 basis points better than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $2.62 billion. The average EPS estimate is $2.35.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 400 members out of 442 rating the stock outperform, and 42 members rating it underperform. Among 127 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 117 give Cerner a green thumbs-up, and 10 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 $81.97.
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