Market Overview

Cerner's Earnings: A Preview


On Wednesday, October 28, Cerner (NASDAQ: CERN) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on Cerner management projections, analysts predict EPS of $0.71 on revenue of $1.37 billion. Cerner EPS in the same period a year ago totaled $0.66. Sales were $1.43 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Wednesday, quarterly profit would be up 7.58%. Sales would be down 4.13% from the year-ago period. Cerner's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.61 0.70 0.74 0.66
EPS Actual 0.63 0.71 0.75 0.66
Revenue Estimate 1.36 B 1.43 B 1.44 B 1.43 B
Revenue Actual 1.33 B 1.41 B 1.44 B 1.43 B

Stock Performance

Shares of Cerner were trading at $72.87 as of October 26. Over the last 52-week period, shares are up 7.71%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Cerner is scheduled to hold the call at 16:30:00 ET and can be accessed here.


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Posted-In: Earnings