Allscripts (MDRX) Beats On Q1 Earnings, Revenues In Line

Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) reported first-quarter 2017 earnings of 10 cents per share, beating the Zacks Consensus Estimate by a penny. The figure outperformed the year-ago earnings of 9 cents per share.

Revenues grew 20% to $415 million, in line with the Zacks Consensus Estimate.

Stock Performance

Year to date, Allscripts’ shares have increased roughly 17.53%, comparing unfavorably with the Zacks categorized Medical Information Systems sub-industry’s addition of 22.27%. The current level is higher than the S&P 500’s return of 8.22% over the same time frame.

Quarter Highlights

Bookings: Bookings in the first quarter were $286 million, up 13% on a year-over-year basis. The rise was driven by solid sales of Sunrise in the U.S. and international markets.

Allscripts Healthcare Solutions, Inc. Price, Consensus and EPS Surprise

Allscripts Healthcare Solutions, Inc. Price, Consensus and EPS Surprise | Allscripts Healthcare Solutions, Inc. Quote

Revenue Details

Software delivery, support and maintenance revenue: This segment consists of all software, hardware, subscription, other transactions and support and maintenance revenues. According to management, revenues from the segment increased 19% to $273 million in the quarter.

Client services revenue: This segment consists of recurring managed services and other project-based client services revenues. Client service revenues were up 22% on a year-over-year basis to $142 million.

Recurring revenue: This segment consists of subscriptions, recurring transactions, support and maintenance and recurring managed services. Recurring revenues increased 23% on a year-over-year basis.

Non-recurring revenue: This segment comprises systems sales and other project-based client service revenues. Non-recurring revenues increased 11% on a year-over-year basis.

Margin Details

Allscripts registered a gross margin of 43.2% in the first quarter compared with 44.0% in the year-ago quarter.

Adjusted operating expenses in the quarter totaled $141 million, reflecting an 18% year over year increase.

Guidance

For the full year, the company expects revenues between $1.71 billion and $1.74 billion, implying growth of 8–10%. Adjusted earnings per share are expected to grow in the band of 10% to 15%.

Zacks Rank & Stocks to Consider

Allscripts’ has a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader medical sector include Neovasc Inc. (NASDAQ:NVCN) , Hologic, Inc. (NASDAQ:HOLX) and Sunshine Heart Inc (NASDAQ:SSH) . Neovasc and Hologic sport a Zacks Rank #1 (Strong Buy), while Sunshine Heart holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 32.8%.

Sunshine Heart deliver a positive earnings surprise of 58.24% in the last quarter. The stock recorded a stellar EPS growth rate (last 3–5 years of actual earnings) of 22%.

Neovasc has seen a stellar gain of 14% over the last three months. The company projects sales growth of 102.88% for the current year.

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