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Allscripts rises after giving 2014-16 outlook

NEW YORK (AP) -- Shares of Allscripts climbed Wednesday as Wall Street approved of the electronic health records company's outlook for the next few years.

THE SPARK: In a regulatory filing Tuesday, Allscripts said that it expects its adjusted revenue to grow 5 to 8 percent per year through from 2014 through 2016. FactSet says analysts were expecting 5 percent growth in 2014.

The Chicago company said its adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, should rise 18 to 22 percent per year over the same period.

THE BIG PICTURE: Allscripts Healthcare Solutions Inc.'s quarterly contract bookings declined throughout 2012 and into early 2013, but it has won more business in the last two quarters and also extended a contract with its biggest customer, the North Shore-LIJ Health System in New York.

Allscripts replaced its CEO and president in 2012 after the board of directors decided the company needed to make management changes. Its chairman had stepped down earlier in the year.

The company is scheduled to report fourth-quarter results after the market closes on Feb. 20.

THE ANALYSIS: Cowen & Co. analyst Charles Rhyee said the company is forecasting continued growth in contract bookings, and Allscripts may be able to surpass its new EBITDA and revenue projections. He maintained an "Outperform" rating with a price target of $20 per share.

SHARE ACTION: Shares of Allscripts picked up $1.40, or 9 percent, to $16.92 in afternoon trading.