Investors punished shares of Cerner Friday, cutting 8.4 percent from the company’s value, after news that it had failed to gain “several large contracts” it expected would be signed.
Shares of the North Kansas City-based company lost $6.01 to close at $65.31 after Thursday’s report.
Cerner had said its bookings of new business had fallen 22.5 percent in the third quarter because of delays in completing those contracts that it had expected would be signed before the end of September. The company said it expected those contracts would be signed before the year ended.
“Those are tracking well,” Cerner President Zane Burke said during a conference call with analysts. “Many have either closed or are in the process of closing.”
Bookings for all of 2017 also should still reach the company’s expectations, the company said, because it also expects to sign not only the delayed contracts but also others originally expected to close during the final months of the year.
Investors watch Cerner’s bookings as evidence that its business continues to grow at a brisk pace. Executives said Friday that these delayed contracts were larger and more complex than Cerner’s traditional business in the past, making it more difficult to predict when they would be signed.
Even with Friday’s early losses, Cerner shares were up more than 36 percent this year.