) revealed that its board of directors approved a new share
repurchase program, which will allow the company to repurchase up
to $217 million worth of shares. However, the company did not
provide a timeframe for completing the repurchase program. After
the announcement, shares of the company rose 1.4% to $54.93 till
The Kansas City, Mo.-based leading healthcare information
technology ("HCIT") solutions provider completed its prior share
repurchase program in the third quarter of the year. Under the
previous share repurchase program, authorized in December 2012,
CERN repurchased 3.6 million shares for $170.0 million.
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Cerner reported net earnings of $115.3 million or 33 cents per
share for the third quarter of the year, meeting the Zacks
Consensus Estimate. This reflected a 16.6% rise from $98.9
million and 17.9% from 28 cents in the comparable quarter a year
Revenues in the quarter grew 8% to $727.8 million, but it was
below the Zacks Consensus Estimate of $756 million. In fact, the
revenue growth was below CERN's own expectations due to decreased
levels of low-margin technology resale.
For the fourth quarter of 2013, Cerner anticipates revenues
between $775 and $815 million while earnings are expected between
38 and 39 cents per share. These compared with the Zacks
Consensus Estimates of $794 million and 36 cents for the quarter.
The company also expects new business bookings between $1.0 and
$1.1 billion for the quarter.
Currently, CERN carries a Zacks Rank #3 (Hold). While we prefer
none of the stocks from the medical information systems industry
at this moment, we can consider some better-ranked stocks from
the medical products industry such as
Bio-Rad Laboratories, Inc.
Hill-Rom Holdings, Inc.
). While Bio-Rad Laboratories and Hill-Rom Holdings carry a Zacks
Rank #1 (Strong Buy), Advaxis carries a Zacks Rank #2 (Buy).