Earnings Preview: Cerner EPS, Revenue Expected to Rise from Previous Quarter

Cerner CERN unveils its next round of earnings this Thursday, July 28, 2011. Here's Benzinga's essential guide to Cerner's second quarter earnings report.

Earnings and Revenue:

Analysts are predicting an EPS reading of 41 cents per share and revenues of $516.8 million. Whether the reported numbers beat or miss analysts' estimates, they will also be compared against last year's numbers for the same period, which were a profit of 32 cents per share on revenues of $456 million. We'll have to wait for Thursday to see if Cerner has accomplished the estimated 28.1% rise in EPS and 13.3% increase in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter	Q1	Q4	Q3	Q2
EPS Estimate	$0.36	$0.40	$0.35	$0.32
EPS Actual	$0.38	$0.41	$0.35	$0.32

Stock Performance:

At last check, shares of Cerner were trading at $65.05. Since January 1st, shares of Cerner have given investors a return of 37.3%. For a full 12 months, the return has risen by 52.1%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Cerner is a Hold.

Competitors:

Want to check out the performance of Cerner closest competitors? Take a look at some of the company's peers in the healthcare sector.

• CareFusion CFN: Hold with a $0.42 recent quarter EPS
• Computer CSC: Hold with a $1.01 recent quarter EPS
• McKesson MCK: Moderate Buy with a $1.66 recent quarter EPS
• Allscripts MDRX: Moderate Buy with a $0.18 recent quarter EPS

Cerner is in the medical information systems industry, which has experienced price/earnings growth of 2%.

Finally, a description of the company's main areas of operation: Cerner designs and supports healthcare devices, healthcare information technology and content solutions for organizations and consumers.

Take Action:

Now that you've gotten an advanced peak at Cerner's upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.

• To see up-to-date news on Cerner, click here
• To see other trading ideas, click here
• To see other company earnings recaps, click here