Allscripts Falls After Sales Miss Analysts’ EstimatesAlex Wayne
Allscripts Inc., the electronic medical records provider, declined 8.3 percent in extended trading after reporting first-quarter sales and earnings that were lower than analysts’ estimates.
Sales fell 4.8 percent to $347.1 million compared with the $368.6 million average of 14 analysts’ estimates compiled by Bloomberg. Profit excluding certain items was 9 cents a share, the Chicago-based company reported today in a statement. Analysts had estimated 15 cents a share.
The company in December fired Glen Tullman as chief executive officer and replaced him with a director, Paul Black, after a year marked by board turmoil, a shareholder revolt and a failed effort to sell itself to private equity buyers. Black called 2013 a “rebuilding” year for the company, which sells its products to doctors, hospitals and other health-care providers.
“We are investing heavily in both our clients and our products and so while our financial results for the quarter are not surprising, they are not satisfactory and not indicative of our long-term potential,” Black said in the statement.
Allscripts reported a first-quarter net loss of $11.6 million, or 7 cents a share, from a profit of $5.8 million, or 3 cents, a year earlier.
The company’s shares declined to $12.70 in extended trading at 4:39 p.m. New York time after closing at $13.85. The shares have gained 28 percent in the past 12 months.