Allscripts Healthcare Results Miss Expectations

Allscripts Healthcare Solutions Inc. said third-quarter revenue rose 11% but missed expectations, and the health-care information-technology company also issued disappointing earnings guidance for the final quarter of the year.

Revenue increased to $392.4 million from $354.5 million a year earlier. Analysts polled by Thomson Reuters had projected revenue of $414.9 million.

For the fourth quarter, Allscripts forecast per-share earnings of 14 cents to 16 cents, below analysts' expectations for 17 cents a share.

Allscripts and private-equity firm GI Partners in April completed their acquisition of health-care information-technology company Netsmart Technologies from Genstar Capital. Under the deal, Netsmart was then combined with Allscripts' home-care software business unit.

The Netsmart acquisition contributed $38 million in revenue for the third quarter. Excluding deferred revenue adjustments related to the Netsmart acquisition, Allscripts' revenue rose 14%.

The Chicago company, which provides software and services to hospitals and other health-care providers, also reported that its bookings rose 7% to $291 million in the latest quarter, with a boost from Netsmart.

Over all, Allscripts Healthcare broke even, compared with a year-earlier loss $5.2 million. On a per-share basis, which reflects convertible preferred stock impacts, Allscripts reported a per-share loss of 6 cents, compared with a year-earlier loss of 3 cents.

Excluding stock-based compensation and other items, per-share earnings were 14 cents, below analysts' average estimates of 15 cents.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

November 03, 2016 17:35 ET (21:35 GMT)

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