Attention Seeking Stock: Allscripts Healthcare Solutions, Inc.’s (NASDAQ: MDRX)

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Allscripts Healthcare Solutions, Inc.,MDRX

On Tuesday, Allscripts Healthcare Solutions, Inc.’s (NASDAQ: MDRX) has shown upward/downward moved of +3.06% and ended the last trade at $11.80. The shares recorded trading volume 3,315,662 shares as compared to its average volume of 2,619,541 shares. The company has 174.71M shares outstanding and market value of 2.062B.

Allscripts Healthcare Solutions, Inc. (MDRX) reported its financial results for the three and nine months ended September 30, 2018.

Third Quarter Financial Highlights

Third quarter 2018 GAAP revenue was $522M, an raise of 16 percent year-over-year. Non-GAAP revenue totaled $536M, improving 19 percent year-over-year.

Contract revenue backlog as of September 30, 2018, totaled $4.7B, up 13 percent contrast to a year ago. Bookings(1) were $246M in the third quarter of 2018. This result compares with $304M in the third quarter of 2017.

Gross margin in the third quarter of 2018 was 41.8 percent on a GAAP basis and 46.9 percent on a non-GAAP basis, contrast with 44.9 and 48.4 percent, respectively, in the third quarter of 2017.

On a GAAP basis in the third quarter of 2018, total operating expenses, consisting of selling, general and administrative and research and development expenses, were $203M, or a 20 percent raise year-over-year. Non-GAAP operating expenses totaled $180M, a 21 percent raise year-over-year. The raise year-over-year was primarily Because of the acquisition of the Enterprise Information Solutions (EIS) business from McKesson Corporation and the acquisition of Practice Fusion. Additionally, the company recorded $16M of legal, transaction-related and other costs in the third quarter of 2018. This compares with $11M of such costs in the third quarter of 2017.

GAAP net loss in the third quarter of 2018 totaled $36M contrast with $29M in the third quarter of 2017. Non-GAAP net income in the third quarter of 2018 totaled $31M, up 5 percent when contrast with the third quarter of 2017.

GAAP loss per share in the third quarter of 2018 was $0.20, contrast with $0.16 in the third quarter of 2017. Non-GAAP earnings per share in the third quarter of 2018 were $0.18, contrast with $0.16 in the third quarter of 2017.

Adjusted EBITDA totaled $106M in the third quarter of 2018, a 9 percent raise contrast with the third quarter of 2017.

Cash flow from operations for the third quarter of 2018 totaled $15M, contrast to $64M for the same period of 2017.

“Our business model delivered strong revenue and earnings growth in the quarter as we benefitted from our recurring revenue base and the acquisitions we have successfully integrated over the past year,” commented Paul M. Black, Chief Executive Officer of Allscripts. “Looking ahead, we believe we will continue to benefit from the investments we have made in building out a complete solution set for our clients in both the acute and ambulatory sectors as well as our exclusive offering in the payer and life sciences business.”

2018 Financial Outlook

Allscripts affirms the following financial outlook for 2018, published originally on February 15, 2018. The company now expects to report 2018 results at the low end of the following ranges:

  • Non-GAAP revenue of between $2.15B and $2.25B, up 17% to 22% year over year
  • Adjusted EBITDA between $420M and $460M, up 12% to 23% year over year, consisting of:
    °  Allscripts, not including Netsmart, Adjusted EBITDA between $310-340M, and;
    °  Netsmart Adjusted EBITDA between $110-120M
  • Non-GAAP earnings per share of between $0.72 to $0.82, an raise of 16% to 32% year over year.

MDRX EPS growth ratio for the past five years was 24.80% while Sales growth for the past five years was 4.50%. Return on equity (ROE) was noted as -0.50% while return on investment (ROI) was -4.00%.

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