Allscripts Shares Plunge 17% As Q3 Results Miss Estimates

(RTTNews) - Shares of Allscripts Healthcare Solutions, Inc. (MDRX) plunged nearly 17 percent in extended trading on Thursday after the healthcare information services company reported results for the third quarter that missed analysts' expectations.

However, the company reported a net loss for the quarter that narrowed from last year, reflecting improved gross margins and revenue growth.

"Allscripts third quarter results continued to show progress. We achieved solid new sales results, reflecting new client bookings across our installed base, as well as the addition of new clients globally. Demand was healthy for our solutions in Allscripts primary end markets including health systems, post-acute care givers and physician practices around the globe," President and CEO Paul Black said in a statement.

The Chicago, Illinois-based electronic health-records company reported a net loss of $25.8 million or $0.15 per share for the third quarter, narrower than $48.9 million or $0.27 per share in the prior-year quarter.

Excluding one-time items, adjusted net income for the quarter was $11.5 million or $0.06 per share, compared to $9.1 million or $0.05 per share in the year-ago quarter.

On average, 26 analysts polled by Thomson Reuters expected the company to report earnings of $0.10 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter grew 4 percent to $345.4 million from $330.2 million in the same quarter last year. Adjusted revenues were $347.7 million, compared to $334.2 million last year, and missed nineteen Wall Street analysts' consensus estimate of $353.02 million.

Gross margin for the quarter improved 10 basis points to 38.1 percent from last year's 38.0 percent.

Bookings for the quarter was $223 million, down from $236 million in the prior-year quarter. Excluding an agreement, with PIH health, bookings grew about 16 percent.

Contract backlog continues to grow and totaled $3.4 billion at the end of the third quarter.

MDRX closed Thursday's regular trading session at $13.55, up $0.05 or 0.37% on a volume of 2.71 million shares. However, the stock plunged $2.25 or 16.61% in after-hours trading.