Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) has bounced back in the market after posting mixed first quarter results that spooked investors. The stock came crashing by 2.29% to lows of $13.01 a share on posting revenues of $346 million against analysts’ estimates of $348.5 million. Earnings per share beat analysts’ estimates, coming in at 13 cents a share.
Robust Growth in Bookings
The turmoil seems to have cooled off, as the stock is currently trading at highs of $13.10 share investors having acknowledged the company’s strong start for the year. If the first quarter report is anything to go by, then all Allscripts Healthcare financial metrics were up, compared to the first quarter of 2015.
The Chicago-based provider of information technology and services says bookings were up by 7% in the quarter to highs of $252 million further affirming continued growth. Booking should continue to grow throughout the year according to CEO Paul Black. Software delivery accounted for 44% of the company’s total bookings in the quarter compare to 63% a year ago
For the full year, Allscripts Health expects revenues of between $1.580 billion and $1.610 billion. The guidance is an upgrade from an initial forecast of $1.430 billion to $1.460 billion.
Barron’s Bullish Bet
Allscripts has underperformed the NASDAQ by 9.6% as well as its peers in the industry. Even with the underperformance, analysts at Barron’s remain bullish about the company’s prospects going forward. In a research note to investors, the analysts say the stock has a 30% upside potential. The analysts attribute their buy call to the recent closure of the Netsmart acquisition and new contract wins.
Last month the company teamed up with Netsmart Technologies for the formation of a joint venture that establishes the largest human services and post-acute technology provider. The analysts expect the acquisition to add approximately $150 million to Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) total Revenue.