Allscripts Announces Upward Adjustments To Non-GAAP Revenue Target For 2017

(RTTNews) - Allscripts Healthcare Solutions, Inc. (MDRX) affirmed its non-GAAP earnings per share growth target of between 10 to 15 percent for 2017. The company increased its non-GAAP revenue outlook of between $1.71 billion and $1.74 billion to a range of between $1.79 billion and $1.82 billion. Separately, Allscripts announced a definitive agreement to acquire McKesson Corporation's (MCK) hospital and health system IT business, Enterprise Information Solutions, for $185 million in cash, subject to adjustment for net debt and working capital.

Allscripts also announced a change in the 3-year CAGR targets for 2018-2020 that incorporates the addition of the Enterprise Information Solutions business and its subsequent impact on non-GAAP revenue through 2020. The company increased its non-GAAP earnings per share target from a range of 12-15 percent to 17-20 percent. Allscripts noted that the increase in non-GAAP earnings per share assumes an accelerating contribution from the Enterprise Information Solutions business to Allscripts profitability through 2020. The company increased its non-GAAP revenue target from a range of 6-8 percent to 9-11 percent.

Non-GAAP earnings per share in the second quarter of 2017 were $0.15, compared with $0.14 in the second quarter of 2016. Non-GAAP revenue totaled $428 million, improving 8 percent year-over-year.