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On Tuesday we received full year and fourth quarter results from Cerner, one of our favoured healthcare stocks listed in New York. I have explained what these guys do before but this video clip titled What is Cerner Health does a great job. It's short and paints a good picture of what this business does. For a local example think of Discovery's Vitality product. But it goes further, it integrates all this info with doctors, nurses, chemists and medical devices. Tracking ones healthcare history, their fitness and wellness as well as their finances concerning healthcare spend. Their catch phrase "Health care is too important to stay the same" certainly inspires. The company services 18 000 facilities in 30 countries.
Cerner released third quarter results a few days back. Just as a refresher here is a copy paste from the about section on their website.
What did Cerner do? Well, they acquired the Siemens Health Service business for 1.3 billion Dollars, the deal was all cash, that part is the good news. It is immediately earnings accretive adding around 15 US cents to next years EPS and 25 US cents in the year after that. The press release says the following "By combining investments in R&D, knowledgeable resources, and complementary client bases, the acquisition creates scale for future innovation. As part of the agreement, Cerner and Siemens will form a strategic alliance to bring new solutions to market that combine Cerner's health IT leadership and Siemens' strengths in medical devices and imaging."
On the 24th of July Cerner reported second quarter results for 2014. Just as a refresher here is what this exciting healthcare business actually does according to the presentation.
As Sasha mentioned in early February we added Cerner to the stocks that we cover. They provide technology to the healthcare industry, the core of their business is moving as much information from paper to digital, with what they call Electronic Medical Records (EMR). Cerner's aim is "support evidence-based clinical decisions, prevent medical errors and empower patients in their care." Moving patient information to digital means that one set of records are kept for a patient that can then be accessed by the doctor treating them or the patient themselves.
One of the newest stocks that we started covering in the US is a business called Cerner, and they released numbers for their fourth quarter and full year yesterday. The business was founded in 1979 in Kansas City (Dorothy from the Wizard of Oz was not involved) by current CEO Neal Patterson and two other partners.