Cerner's Q1 earnings hurt by delayed VA contract: 4 things to know

Cerner reported $1.3 billion in revenue for its first quarter ended March 31, which represents a 3 percent increase from one year prior — less than it expected.

It attributes the underwhelming results to the delay of a large contract with the Department of Veterans Affairs.

"Our results in the first quarter included strong bookings and cash flow and in-line earnings, but our revenue was below expected levels," said President Zane Burke. "Our mixed results and revised outlook reflect the delay of a large contract and a less predictable end market. However, we remain optimistic about our long-term growth opportunities due to our strong market position and portfolio of solutions and tech-enabled services that align with the pressures healthcare stakeholders are facing."

Here are four highlights from Cerner's financial results, which were posted May 2.

1. Bookings in the first quarter of 2018 were $1.4 billion, up 12 percent from $1.3 billion in the same period last year.

2. Cerner reported $160 million net earnings, and diluted earnings per share were $0.48. That's compared to $173.2 million net earnings in the first quarter of 2017, which resulted in diluted earnings per share at $0.52.

3. Operating expenses totaled $866.4 million, up from $817.4 million one year prior.

4. Cerner projects second quarter revenue between $1.3 billion and $1.4 billion, and full-year revenue between $5.3 billion and $5.5 billion, which is down from its previously expected range of $5.5 billion to $5.7 billion.

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