Cerner Corporation (CERN) and medical software developer OTTR (Organ Transplant Tracking Record) Chronic Care Solutions have joined hands to integrate their products and services to improve the workflows and processes required to support organ, blood and marrow transplant care delivery teams. However, the news failed to entice investors as shares slid 0.7% following the announcement.
Currently, OTTR is the leading patient tracking application and patient record system specifically tailored for solid organ transplant centers and CERN will be the only electronic health record provider to offer it. As a result, it will add significant value to CERN clients and help clinicians to access real-time data for better patient management and treatment decisions.
OTTR Chronic Care Solutions, operating since 1993, has contracts with transplant centers in the U.S. and Canada. It supports more than 200 different transplant programs till date.
Cerner reported adjusted net earnings of $128.1 million or 36 cents per share for the fourth quarter of 2013, topping the Zacks Consensus Estimate of 34 cents per share. This reflected a 14.6% rise from $111.8 million and 12.5% from 32 cents per share in the comparable quarter a year ago.
However, reported net earnings fell 46.3% to $60.1 million from $111.8 million in the fourth quarter of 2012 while earnings per share dipped 46.9% to 17 cents from 32 cents per share in the year-ago quarter.
Revenues in the quarter grew roughly 12% to $795.3 million, exceeding the Zacks Consensus Estimate of $793 million. Global revenues went up 8% for the quarter. The increase can be attributed to stronger revenues from Support, maintenance and services and Reimbursed Travel, partially offset by weaker revenues from System sales.
For the first quarter of 2014, CERN anticipates revenues between $770 and $810 million while adjusted earnings are expected between 33 and 34 cents per share, after share based compensation expense. These compared with the Zacks Consensus Estimates of $781 million 34 cents for revenues and earnings per, respectively, for the quarter.
For full year 2014, CERN anticipates revenues in the range of $3.2 to $3.4 billion. Adjusted earnings are expected between $1.51 and $1.55, after share based compensation expense. These compared with the Zacks Consensus Estimates of $3.3 billion and $1.54 for revenues and earnings per share, respectively, for the year.
Currently, CERN retains a Zacks Rank #3 (Hold). Some better-ranked stocks in the medical information sector include Computer Programs & Systems Inc. (CPSI), Omnicell, Inc. (OMCL), and athenahealth (ATHN). Computer Programs & Systems and Omnicell sport a Zacks Rank #1 (Strong Buy), while athenahealth carries a Zacks Rank #2 (Buy).