) expanded its health information technology (HIT) solution
client base to 24 countries by offering Cerner Millennium to a
privately-owned 674-bed Hospital Israelita Albert Einstein in
Brazil. The HIT solution will help improve the quality of patient
care and streamline operations in the hospital.
The first phase of the project involves translation of Cerner
Millennium into Portuguese, Orders, Documentation, electronic
medical record (EMR), Pharmacy, Patient Management, Billing, ER,
ICU, Oncology, Cardiology, Laboratory, Surgery, Ambulatory
practice, Medication Administration, Women's Health and various
Performance Improvement and Quality Outcomes solutions across the
acute care facility and clinics in the hospital. Currently, the
hospital has eight ambulatory clinics in Sao Paulo.
CERN started rising and has been hovering around its 52-week high
recently following the announcement of a multiyear partnership
with Utah-based non-profit health care provider Intermountain
Healthcare, which has 22 hospitals, 185 clinics, a medical group
comprising 1,000 physicians and a health plans division.
The partnership agreement will implement Cerner's electronic
medical record and revenue cycle solutions across all of
Intermountain's hospitals and clinics. It will also develop a new
set of tools for a post-fee-for-service world in areas such as
activity-based costing. It is expected to generate more than $50
million in annual revenue for CERN.
Cerner reported a 14.3% rise in second-quarter 2013 earnings per
share to 32 cents, meeting the Zacks Consensus Estimate. Net
income rose 15.4% year over year to $112.9 million.
Revenues in the quarter rose 11.0% year over year to $707.6
million. However, it missed the Zacks Consensus Estimate of $724
million. The revenues growth was at the lower end of Cerner's
earlier assumptions due to reduced volume of tech resale, which
carries a lower margin.
For the third quarter of 2013, CERN forecasts revenues in a band
of $740 million-$770 million. Earnings per share, before share
based compensation expense, are expected in the range of 35 cents
to 36 cents. Cerner projects stock-based compensation costs to
dilute second quarter earnings by about 2 cents to 3 cents.
For 2013, the company continues to forecast revenues in the
region of $2,950 million to $3,050 million. Earnings per share,
before share based compensation expense, are forecasted in the
range of $1.40 and $1.42 (earlier $1.39 and $1.42). Cerner
projects stock-based compensation costs to dilute earnings by
about 8 cents to 9 cents.
Cerner carries a Zacks Rank #3 (Hold). While there are no other
medical information systems stocks that are currently worth a
look, we consider medical product stocks such as
Bio-Rad Laboratories, Inc.
) with a Zacks Rank #1 (Strong Buy), and
Boston Scientific Corp.
), both with a Zacks Rank #2 (Buy).
BIO-RAD LABS -A (BIO): Free Stock Analysis
BOSTON SCIENTIF (BSX): Free Stock Analysis
CERNER CORP (CERN): Free Stock Analysis
HOSPIRA INC (HSP): Free Stock Analysis Report
To read this article on Zacks.com click here.