Earnings Preview: Allscripts Healthcare

Allscripts Healthcare Solutions (MDRX) is expected to report Q2 earnings Tuesday after the closing bell with a conference call scheduled for 4:30 pm ET.

Guidance

Analysts are expecting a profit of 11c on revenue of $76.94M. The consensus range for EPS is 9c to 13c with a revenue range of $75.19M to $80M, according to First Call. For Q1 the company reported EPS 9c vs. consensus of 11c and revenue $6.96B vs. consensus of $6.94B.

The company should benefit from the upcoming Medicare spending bill. In the bill electronic prescriptions will be encouraged by incentives and the company is well positioned to take advantage of an increase in electronic prescriptions.

Analyst Views

On June 6, JMP Securities said it expected the company to continue to penetrate key markets, and the firm predicted that adoption of its EHR platform will increase. However, the firm believes the company must overcome several near-term potential difficulties, including possible problems involving its merger with Misys. The firm believes the stock is fairly valued.