Why Allscripts Healthcare Solutions Popped
Jul 10th 2013 3:51PM
Updated Jul 10th 2013 3:52PM
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Allscripts Healthcare Solutions , a health care information technology company, jumped as much as 10% after the company announced better-than-expected preliminary second-quarter booking results.
So what: In a press release, Allscripts noted that it anticipates that bookings will exceed the $200 million mark, which is higher than the $194 million in booked in the year-ago quarter. This would be Allscripts first year-over-year increase in bookings in the past six quarters. Allscripts also pointed to a consistent customer backlog totaling $3.1 billion.
Now what: Before you get too excited, keep in mind that this is the same company that seemed desperate to sell itself last year only to find no buyers. The strength associated with today's release is surprising, but I'm not exactly sure I'd call it a trend. Allscripts' turnaround strategy could take years to execute, and it's likely to put the company even further behind its peers. I'd suggest keeping a safe distance and observing Allscripts from the sidelines.
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The article Why Allscripts Healthcare Solutions Popped originally appeared on Fool.com.Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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