Ahead of the Bell: Cerner jumps after 3Q report
Shares of Cerner Corp. climbed before the stock market opened Friday, a day after the health care information management company said its third-quarter earnings rose 25 percent.
The Kansas City, Mo., company also had said after markets closed Thursday that it expects to book between $925 million and $975 million in new business in the fourth quarter.
That projection trumped the $849 million that Jefferies analyst David Windley expected. He said the high target indicates that the company's growth will extend into next year, and it also shows management confidence in the company's pipeline.
Windley raised his rating on shares of the stock to "Buy" from "Hold," and increased his price target to $82 from $80. The analyst said the higher-than-expected bookings forecast and the fact that the company's share price has slipped 14 percent over past three weeks combine to create "a more compelling entry point" for investors.
Cerner said Thursday it earned $98.9 million, or 56 cents per share, in the quarter that ended Sept. 29. That was up from $78.8 million, or 45 cents per share, during the same period last year.
Revenue rose 18.3 percent to $676.5 million.
The company's shares was up more than 12 percent, or $8.67, to $77.14 in premarket trading Friday.