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AllScripts (MDRX) Down 3.6% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for AllScripts Healthcare (MDRX - Free Report) . Shares have lost about 3.6% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is AllScripts due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Allscripts Q4 Earnings and Revenues Miss Estimates
Allscripts Healthcare Solutions, Inc. reported fourth-quarter 2019 adjusted earnings per share of 17 cents, which missed the Zacks Consensus Estimate of 18 cents by 5.6%. The bottom line also declined 5.6% on a year-over-year basis.
For the full-year 2019, the company reported earnings per share of 67 cents, down 1.5% from 2018.
Revenue Details
On a non-GAAP basis, revenues totaled $452 million, which lagged the Zacks Consensus Estimate by 1.5%. However, the top line improved 2.5% year over year. Moreover, on a reported basis, revenues amounted to $451 million in the quarter, reflecting year-over-year improvement of 2%.
For full-year 2019, the company reported net sales of $1.77 billion, up 1.2% from 2018.
For fourth-quarter 2019 bookings came in at $312 million, significantly up by 5.8% from the prior-year quarter.
Segment Details
In a bid to focus on the payer and life sciences market and evolution of the healthcare IT industry, the company realigned segment reporting structure by selling its stake in Netsmart on Dec 31, 2018.
The new Provider segment consists of the core integrated clinical software applications, financial management and patient engagement solutions targeted at clients across the entire continuum of care. Meanwhile, the new Veradigm segment primarily focuses on the payer and life sciences market.
Software delivery, Support and Maintenance
In the quarter under review, revenues at the segment amounted to $281.6 million on a reported basis, down 2.6% from the year-ago quarter's tally.
Client Services
At this segment, revenues totaled $169.4 million, up 10.6% from the year-ago quarter's figure.
Margins
Gross profit in the fourth quarter was $180.1 million, down 4.3% from the year-ago quarter. As a percentage of revenues, gross margin was 39.9%, down 260 bps from the year-ago figure.
Adjusted gross profit amounted to $191.9 million, down 3.9% year over year. Adjusted gross margin was 42.5%, down 280 bps from the prior-year quarter.
Adjusted operating income in the reported quarter was $43.9 million, down 3.5% year over year. Adjusted operating margin was 9.7%, as a percentage of revenues, down 60 bps from the prior-year quarter.
Financial Update
As of Dec 31, 2019, cash and cash equivalents totaled $129.6 million, down 25.6% from year-end 2018.
At the end of 2019, net cash provided by operating activities totaled $12.4 million against net cash used of $13.6 million at the end of 2018.
2020 Guidance
For 2020, adjusted EPS is expected in the range of 70-75 cents. The Zacks Consensus Estimate is pegged at 76 cents.
For the full-year 2020, revenues are estimated between $1.75 billion and $1.85 billion.
The company projects full-year bookings in the range of $900 million to $1 billion.
For first-quarter 2020, revenues are expected between $420 million and $430 million. The Zacks Consensus Estimate is pegged at $450.9 million. With respect to booking, the company anticipates the metric to be in the band of $175-$200 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -10.19% due to these changes.
VGM Scores
Currently, AllScripts has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, AllScripts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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AllScripts (MDRX) Down 3.6% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for AllScripts Healthcare (MDRX - Free Report) . Shares have lost about 3.6% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is AllScripts due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Allscripts Q4 Earnings and Revenues Miss Estimates
Allscripts Healthcare Solutions, Inc. reported fourth-quarter 2019 adjusted earnings per share of 17 cents, which missed the Zacks Consensus Estimate of 18 cents by 5.6%. The bottom line also declined 5.6% on a year-over-year basis.
For the full-year 2019, the company reported earnings per share of 67 cents, down 1.5% from 2018.
Revenue Details
On a non-GAAP basis, revenues totaled $452 million, which lagged the Zacks Consensus Estimate by 1.5%. However, the top line improved 2.5% year over year. Moreover, on a reported basis, revenues amounted to $451 million in the quarter, reflecting year-over-year improvement of 2%.
For full-year 2019, the company reported net sales of $1.77 billion, up 1.2% from 2018.
For fourth-quarter 2019 bookings came in at $312 million, significantly up by 5.8% from the prior-year quarter.
Segment Details
In a bid to focus on the payer and life sciences market and evolution of the healthcare IT industry, the company realigned segment reporting structure by selling its stake in Netsmart on Dec 31, 2018.
The new Provider segment consists of the core integrated clinical software applications, financial management and patient engagement solutions targeted at clients across the entire continuum of care. Meanwhile, the new Veradigm segment primarily focuses on the payer and life sciences market.
Software delivery, Support and Maintenance
In the quarter under review, revenues at the segment amounted to $281.6 million on a reported basis, down 2.6% from the year-ago quarter's tally.
Client Services
At this segment, revenues totaled $169.4 million, up 10.6% from the year-ago quarter's figure.
Margins
Gross profit in the fourth quarter was $180.1 million, down 4.3% from the year-ago quarter. As a percentage of revenues, gross margin was 39.9%, down 260 bps from the year-ago figure.
Adjusted gross profit amounted to $191.9 million, down 3.9% year over year. Adjusted gross margin was 42.5%, down 280 bps from the prior-year quarter.
Adjusted operating income in the reported quarter was $43.9 million, down 3.5% year over year. Adjusted operating margin was 9.7%, as a percentage of revenues, down 60 bps from the prior-year quarter.
Financial Update
As of Dec 31, 2019, cash and cash equivalents totaled $129.6 million, down 25.6% from year-end 2018.
At the end of 2019, net cash provided by operating activities totaled $12.4 million against net cash used of $13.6 million at the end of 2018.
2020 Guidance
For 2020, adjusted EPS is expected in the range of 70-75 cents. The Zacks Consensus Estimate is pegged at 76 cents.
For the full-year 2020, revenues are estimated between $1.75 billion and $1.85 billion.
The company projects full-year bookings in the range of $900 million to $1 billion.
For first-quarter 2020, revenues are expected between $420 million and $430 million. The Zacks Consensus Estimate is pegged at $450.9 million. With respect to booking, the company anticipates the metric to be in the band of $175-$200 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -10.19% due to these changes.
VGM Scores
Currently, AllScripts has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, AllScripts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.