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Cencora stock down premarket as company reports bottom-line miss in Q1

EditorRachael Rajan
Published 05/01/2024, 07:58 AM
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CONSHOHOCKEN, Pa. - Cencora, Inc. (NYSE: COR) today reported Q1 EPS of $3.28, $0.42 worse than the analyst estimate of $3.70. Revenue for the quarter came in at $72.3 billion versus the consensus estimate of $70.65 billion. COR stock was down 0.96% following the announcement.

The company saw a 7.8% increase in revenue to $68.4 billion for the second quarter of fiscal 2024, compared to the same period last year. The company's adjusted diluted earnings per share (EPS) rose by 8.6% to $3.80, up from $3.50 in the prior year's second quarter. However, GAAP diluted EPS saw a slight decline to $2.09 from $2.13 in the previous year.

Steven H. Collis, Chairman, President, and CEO of Cencora, highlighted the company's critical role in healthcare and the pharmaceutical supply chain, attributing the strong quarterly performance to the team's ability to navigate complexity and uncertainty. The updated full-year guidance reflects the value Cencora delivers across its footprint.

For fiscal year 2024, Cencora has raised its adjusted diluted EPS guidance from the previous range of $13.25 to $13.50 to a new range of $13.30 to $13.50. The midpoint of this guidance, $13.40, is compared to the analyst consensus. The company's outlook also includes expected solid business performance for the full year, with a higher effective tax rate and expected share count adjustments.

In the U.S. Healthcare Solutions segment, revenue grew by 8.1%, driven by unit volume growth, including increased sales of diabetes and weight loss products, as well as specialty products to physician practices and health systems. The International Healthcare Solutions segment saw a 5.3% increase in revenue, primarily due to growth in the European distribution business and sales in Canada and Brazil.

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Cencora's Board of Directors declared a quarterly cash dividend of $0.51 per common share, payable on May 24, 2024, to stockholders of record as of May 10, 2024. Additionally, a new share repurchase program was authorized, allowing the company to purchase up to $2.0 billion of its outstanding common stock, subject to market conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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