Third-quarter earnings at Cerner Corp. rose 12%, roughly in line with analysts' expectations, as the health information technology company continues to diversify and grow its business.
Net earnings totaled $129 million in the quarter ended Sept. 27, up from $115.3 million in the same period a year ago, Cerner said in its financial filings. Third-quarter revenue soared more than 15% to $840 million, thanks to large growth abroad in the United Kingdom, Canada and the Middle East, executives said.
Cerner's central product offering is its electronic health record for hospitals and ambulatory settings, competing heavily for market share with Epic Systems Corp. However, Cerner has invested more in revenue-cycle management and population-health products.
Cerner is primed to grow all three of those areas once it completes its acquisition of Siemens Health Services. Cerner, based in Kansas City, Mo., announced the Siemens deal in August and received federal approval in September. Executives said on a call with investors that the $1.3 billion takeover, which has already cost the company $6 million in miscellaneous charges, is expected to close by Feb. 2, 2015.
Cerner is also in the hunt for two potentially lucrative IT contracts. It is one of several vendors vying for a 10-year, estimated $11 billion contract with the Department of Defense to replace the Military Health System's EHR. The Mayo Clinic, Rochester, Minn., is similarly looking for a technology overhaul. Cerner executives said they are “well-positioned” for the Mayo deal but did elaborate further.
Cerner's profit in the first nine months of its fiscal year grew 12%, from $338.3 million in 2013 to $377.6 million this year. Revenue totaled almost $2.5 billion, and year-end revenue is projected to be roughly $3.4 billion.
Cerner's stock closed Thursday at $59.70, up 2.5% for the day.
Follow Bob Herman on Twitter: @MHbherman
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