Dive Brief:
- Allscripts Healthcare Solutions hit 11-month high last Friday after preliminary Q2 earnings beat estimates.
- Earnings per share were up 33% from Q2 last year, at 12 cents per share.
- David Larsen, a Leerink analyst, stated in a research note that the quarter's bookings of $225 million to $260 million beat estimates of $242 million. He added that, "we view the 9 to 12% bookings growth guidance as excellent, and it represents a nice improvement from the 6% year/year bookings growth in Q1."
Dive Insight:
Michael Cherny, an Evercore ISI analyst wrote in a report that exceeding Wall Street estimates was "something the company has not accomplished in a long time."
According to Investor's Business Daily, the company's turnaround program, active since Paul Black became CEO in 2012, returned it to profit growth last year after nine straight declining quarters. However, just in May, the company announced cutting 250 U.S. jobs with more expansion of software development in India. In addition, due to a class action settlement, the company had to pay $9.75 million for securities fraud last April where the company allegedly overstated its integration potential following a $1.3 billion merger with Eclipsys in 2010. But perhaps Allscripts' recent partnership with NantHealth, which plans to go public this year, will further boost the company's profits.