Cerner Revenue Hits $1.4B in Q3

The Kansas City-based health information technology company saw revenue rise 7% year-over-year.

Cerner Corp. reported $1.4 billion in Q3 revenue, according to its latest earnings report released Thursday afternoon.

The Kansas City-based health information technology company grew its revenue 7% year-over-year and recorded GAAP net earnings of $169.4 million.

Additionally, Cerner reported an operating cash flow of $351.4 million with a free cash flow of $174.4 million.

C-suite perspective:

"I am pleased with our execution in the third quarter as we again delivered against the expectations we set while also continuing to advance Cerner’s broader transformation," Brent Shafer, CEO of Cerner, said in a statement. "I believe the balanced focus of near-term operational improvements combined with our innovation and growth strategies position Cerner to deliver sustainable and profitable growth."

While Cerner produced strong financials, the company's quarterly operating margin was 6.2%, down from 15.46% this time last year.

Additionally, Cerner's operating earnings dropped off from $207.1 million in Q3 2018 to $88.7 million in Q3 2019.

Looking ahead, Cerner projects its Q4 revenue will be between $1.41 billion and $1.46 billion, while its adjusted diluted earnings per share will between $0.73 and $0.75.

Cerner's stock did not bounce after the earnings report, trading up slightly during the after-hours session.

The earnings report was released nearly three weeks after Cerner notified more than 150 employees in California that they would be laid off in December.

For complete financial information, review Cerner's filing with the Securities and Exchange Commission.

Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.