Morgan Keegan Comments On Computer Programs & Systems Earnings Preview

According to Morgan Keegan, Computer Programs & Systems (NASDAQ: CPSI) appears to be a significant beneficiary of the government EHR incentive program.

Morgan Keegan reported that it expects CPSI to report relatively in line March quarter results tomorrow night versus the consensus of $0.46 on $39.6 million. "While the company blew away December expectations, seasonality should be weaker in March and operating costs should be higher. Management is likely to bracket the June quarter consensus of $0.50 on $42.3 million with guidance. We believe CPSI is relatively well positioned to benefit as states start sending out Medicaid EHR incentive checks. Many small hospitals in the 13 states that have active Medicaid EHR incentive programs have been getting initial checks for $500,000+. Those 13 active programs account for almost 50% of CPSI's current footprint."

Computer Programs & Systems closed yesterday at $60.79