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Thursday, October 1, 2020

Cerner Corporation (NASDAQ:CERN) Recent Earnings Shows Major Concern

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The Cerner Corporation (CERN) shares are trading at lower $69.45 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $76.36.

To add more color to this target, the company’s high over the last year is $80.90 and the low is $53.08. Over the last 52 weeks, CERN is down -14.15% while the S&P 500 is down -0.87%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, CERN reported a profit of $520.68 million. Cerner Corporation also saw revenues increase to $1.41 billion. In addition, CERN has free cash flow of $160.4 million as of 03-2020. The company’s EBITDA came in at $351.02 million which compares well with its peers.

CERN booked profit margins of 8.90%, its Return on Equity (ROE) is 11.80%, and its Return on Assets is 7.30%. All told, it is clear that, CERN needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CERN has a short ratio of 7.32 and outstanding shares of 309.66M.

Company Outlook

CERN has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.84 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.61. Cerner Corporation CERN also noted assets of $6.74 billion at the end of the last quarter. Investors should also keep an eye on sector updates as CERN has historically followed its peers on positive news.

All told, Cerner Corporation CERN has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CERN represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Cerner Corporation CERN is now commanding a market cap of 21.05B and a float of 303.85M. CERN is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CERN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in CERN, either long or short, and we have not been compensated for this article.

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