July 27 (Reuters) - Shares of Cerner Corp fell as much as 7 percent after the healthcare IT company reported quarterly order bookings below Street estimates.
Bookings in the second quarter were up 8 percent at $700.5 million, while analysts were expecting $710 million.
"The bookings were strong, but Street wanted more," Robert W. Baird & Co analyst Eric Coldwell said in a client note.
On Thursday, Cerner reported second-quarter earnings of 59 cents per share, beating analysts estimates of 55 cents per share, according to Thomson Reuters I/B/E/S.
However, on the same day, rival Quality Systems withdrew its full-year outlook after a weaker-than-expected start to the year owing to slowing sales of its high-margin software systems.
"Peers' unfavorable commentary and results won't help and sector sentiment is continuing a downward migration," Coldwell said.
Cerner also competes with Athenahealth Inc in the healthcare IT sector.
Baird, which lowered the price target on Cerner stock to $81 from $89, however expects a dip in the stock price to be an "opportunity for investors willing to invest in a high quality industry leader likely positioned to be the greatest share-taker over the next one to three years."
Shares of the Kansas City, Missouri-based company were trading down 6 percent at $73.30 on the Nasdaq. They touched a low of $72.50.