Allscripts Expects Q4 Interim Sales Beat Consensus; Approves $250M Buyback

Allscripts Healthcare Solutions Inc MDRX expects Q4 revenue of $390 million - $395 million, better than the consensus of $$386.75 million.

• For FY21, the Company expects GAAP operating income of $70 million - $75 million and adjusted EBITDA of $295 million - $300 million, an increase from the prior outlook of $275 million - $285 million.
• The Company also expects FY2021 cash flow from continuing operations of $245 million - $250 million.
• It expects free cash flow to be between $165 million - $170 million, up from previous guidance of $145 million - $155 million.
• Allscripts has announced a new share repurchase program to purchase up to $250 million shares. 
• The new share repurchase program does not have a termination date and replaces the previous authorization to repurchase up to $350 million of common stock. 
• In Q4 FY21, Allscripts repurchased $108 million shares.
• Analyst Reaction: SVB Leerink analyst Stephanie Davis has upgraded Allscripts from Market Perform to Outperform and raised the price target from $19 to $22.
• Price Action: MDRX shares are up 7.41% at $18.78 during the market session on the last check Tuesday.