Cerner slides after long-term guidance issued at investor day
Shares of Cerner are lower in late morning trading after the company offered long-term revenue growth guidance as part of its Investment Community Meeting at HIMSS Orlando. Cerner said in slides related to the event that it is targeting 6-9% 5-year CAGR from 2018-2023, noting that it is targeting about $600M from Strategic Growth by 2023 to achieve its 7.5% midpoint. In the slides, Cerner stated that the "federal opportunity is visible, but execution is critical and some risks are beyond our control." Additionally, the company said its "Population Health assumptions [have been] modified compared to prior years to reflect slower shift to risk assumption by providers." The slides also state that the company believes "margins have stabilized, and we are focused on returning Adjusted Operating Margin to over 20% and driving earnings growth greater than revenue growth, [but the] timing and amount of margin expansion may fluctuate based on several factors." Cerner also stated that it expects "strong cash flow growth after 2019, which includes campus related capex increase." Approaching noon, Cerner shares have slid $2.64, or 4.5% to $56.18.