Cerner’s massive health program believes the worst effects of COVID-19 are behind it. Project planning and sales activities will increase in 2021 after strong growth in books in the fourth quarter.
It is hoped that the hospital will continue to recover budgets from disease and enable customers to sell traditional IT healthcare, as Cerner has also expanded its information-as-you- a service delivery, including medical practice, to pay for the slow growth in healthcare. Business HCE. However, the school’s history has never gone away, creating mixed expectations for the company in 2021 in the fourth quarter of financial results that opened on Wednesday afternoon.
The Missouri-based IT company reported total 2020 sales of $ 5.5 billion, a 3% year-over-year drop in headwinds from COVID-19. Cerner shares fell slightly on Wednesday after entering the market with results.
Cerner’s forecast for 2021 states that the administration expects most of its revenues in the second half of the year, and reflects a view to value time to return to operations usually. However, due to the fall in sales in 2020, orders have been very good because Cerner’s staff customers have had important things to do with the COVID-19 and abandon IT.
Cerner estimates revenue of between $ 5.75 billion and $ 5.95 billion this year, in line with Wall Street expectations. The median is equivalent to an increase of 6% compared to 2020.
Cerner’s adjusted earnings were just below analysts ’expectations, though still up 11% year -over -year.
“As we think consumers are more likely to breathe in the light of the mix of weight and slow growth, we are becoming more confident in Cerner’s ability to capture and align with the market thanks to it in developments in healthcare statistics. “Said SVB Die Leerink, researcher Stephanie Davis. He wrote in a statement Thursday morning.
Cerner estimates the potential savings to be between $ 1.15 million and $ 1.35 million for the first quarter as hospitals recover from the increase in COVID-19 patients in the second half of 2020 appeared it only makes it worse. The middle of this scenario reflects a growth of 15% over the previous year. Cerner assumes that sales in 2021 will be driven by its strategic growth and federal companies and complemented by acquisitions, CFO Marc Naughton said in a phone call with investors on Wednesday afternoon.
Naughton is leaving Cerner at the end of the first quarter after nearly 30 years with the company and will be replaced by Mark Erceg, former CFO of Tiffany & Co.
Cerner executives stressed vendors’ growing focus on high-end businesses over four decades, saying the script lags far behind the traditional IT sales backed by the long list of vendor customers and that the database has 100 million patients and includes more than 500 million patients.
The addition of data analytics company Kantar Health, which saved Cerner $ 375 million in accounts in December, is an integral part of this data monetization strategy.
Naughton said Kantar is “a strong addition to our existing data as a service expense and a significant entry into the pharmaceutical market.”
Cerner executives expect the Kantar Company to have annual sales of $ 150 million and the industry can look forward to further mergers and acquisitions to add to their data. The company’s goal is to become a billion-dollar health and life sciences data company, executives at J.P. Morgan in January.
The federal company Cerner is also an important growth pole. For the first time in history, the Department of Defense, Department of Veterans Affairs, and Coast Guard are using the same EHR after Cerner’s EHR was first published on a VA website in October.
The EHR now operates at 20 DOD commandos and four Coast Guard locations, in addition to the Mann-Grandstaff VA Medical Center in Spokane, Washington, and its four clinics. Mann-Grandstaff was the first start on the troubled $ 16 billion projects, which has been hampered by delays, administrative revenue, rising costs, and operational issues since its launch in 2018, but now appears to have gained momentum.
“VA and Cerner are actively preparing various institutions for planned locations in 2021,” said Travis Dalton, Cerner’s director of customer service and services and president of government services.
In the fourth quarter, Cerner had sales of $ 1.4 billion, a year below 3% from the investment but above Wall Street’s expectations. According to management, without the sale, sales would increase by 1%.
Cerner reported a net income of $ 142 million for the quarter, up 8% year over year.