Allscripts falls as 1Q results miss Street's view

Allscripts Healthcare Solutions drops as 1st-quarter performance misses analysts' estimates

Associated Press

NEW YORK (AP) -- Shares of Allscripts Healthcare Solutions Inc. fell Friday as the healthcare information technology company reported a loss for its first quarter. Adjusted earnings and revenue missed Wall Street's view.

THE SPARK: On Thursday Allscripts reported a quarterly loss of 7 cents per share. That compared with a profit of $5.8 million, or 3 cents per share, a year ago. Taking out one-time items, earnings were 9 cents per share. Revenue fell 5 percent, to $347.1 million.

Analysts polled by FactSet predicted adjusted earnings of 14 cents per share on $366.8 million in revenue.

THE ANALYSIS: Cowen and Co.'s Charles Rhyee said in a client note that he isn't focusing too much on the quarterly miss because Allscripts didn't give much in the way of guidance. Instead, the analyst said that he was concentrating more on bookings of $178 million that were basically flat with the fourth quarter. Rhyee said that the first-quarter bookings topped his estimate of $167 million.

The analyst views any weakness in the stock as a buying opportunity and kept an "Outperform" rating.

Alexander Draper of Raymond James said that the quarterly performance was softer than expected and is "a reminder that the business is still going through a transition."

The analyst said that the first-quarter bookings put Allscripts in position to hit its goal of achieving bookings growth in 2013. Draper maintained a "Strong Buy" rating and $16 price target.

A representative for Allscripts said the company does not comment on analyst reports.

SHARE ACTION: Allscripts' stock shed 38 cents, or 2.7 percent, to $13.47. The shares have traded in a 52-week range of $8.84 to $14.23. The stock is up 43 percent for the year to date.

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