Key Takeaways Cencora's U.S. Healthcare Solutions segment continues to drive growth, led by strong specialty demand.GLP-1 revenue rose 36% year over year but dipped 10% sequentially due to seasonal trends.International segment lags, with lowered outlook tied to weak clinical logistics and consulting demand.Cencora (COR) is slated to report third-quarter fiscal 2025 results on Aug. 6, before market open.In the last reported quarter, the company delivered an earnings surprise of 8.33%. COR’s earnings beat est ...

Wall Street analysts forecast that Cencora (COR) will report quarterly earnings of $3.78 per share in its upcoming release, pointing to a year-over-year increase of 13.2%. It is anticipated that revenues will amount to $80.33 billion, exhibiting an increase of 8.2% compared to the year-ago quarter.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this ...

Core Insights - Citius Oncology has executed a distribution services agreement with Cencora to enhance its commercial infrastructure for the FDA-approved immunotherapy LYMPHIR [1][2][3] - The agreement aims to expand Citius Oncology's distribution network, ensuring product availability upon launch and supporting long-term scalability [2][3] - LYMPHIR is indicated for relapsed or refractory cutaneous T-cell lymphoma (CTCL) and is a targeted immune therapy that has shown antitumor activity [4][5] Company Overview - Citius Oncology is a majority-owned subsidiary of Citius Pharmaceuticals, focusing on developing and commercializing novel targeted oncology therapies [29][30] - The FDA approved LYMPHIR in August 2024, with an estimated initial market exceeding $400 million, indicating significant growth potential in an underserved market [29][30] - Citius Pharmaceuticals also has a late-stage pipeline that includes other critical care products, demonstrating a diverse portfolio [30] Product Details - LYMPHIR (denileukin diftitox-cxdl) is a recombinant fusion protein that targets IL-2 receptors, leading to cell death in tumors expressing these receptors [4][5] - The product is indicated for adult patients with r/r Stage I-III CTCL after at least one prior systemic therapy [8][29] - The drug has received regulatory approval in Japan for CTCL and peripheral T-cell lymphoma (PTCL) prior to its FDA approval [5]

Group 1 - Cencora (COR) is a notable stock in the Medical sector, currently outperforming the sector with a year-to-date return of 29.6% compared to an average loss of 5.3% for the Medical group [4][5] - Cencora holds a Zacks Rank of 2 (Buy), indicating positive analyst sentiment and an improving earnings outlook, with a 2.9% increase in the consensus estimate for full-year earnings over the past 90 days [3] - The Medical group ranks 4 within the Zacks Sector Rank, which includes 16 different groups, highlighting the relative strength of this sector [2] Group 2 - Cencora is part of the Medical Services industry, which consists of 58 stocks and currently ranks 68 in the Zacks Industry Rank, with an average loss of 3.9% year-to-date [5] - Catalyst Pharmaceutical (CPRX), another stock in the Medical sector, has also outperformed the sector with a year-to-date return of 19.6% and holds a Zacks Rank of 2 (Buy) [4][6] - The Medical - Drugs industry, which includes Catalyst Pharmaceutical, ranks 55 and has experienced a decline of 1.8% so far this year [6]

Core Insights - Albert Anthony is a Croatian-American media personality and analyst for financial platforms, focusing on dividend stocks and general market commentary [1] - He has gained over 1,000 followers since 2023 and has covered more than 200 companies across various sectors [1] - Anthony has a background in the IT sector and has worked with a top 10 financial firm in the US [1] - He plans to launch a new book in 2025 discussing his stock rating methodology [1] Company Overview - Albert Anthony & Co. is a sole proprietorship registered in Austin, Texas, and owns the Albert Anthony brand [1] - The company does not provide personalized financial advice and focuses on general market commentary based on publicly available data [1] Educational Background - Anthony holds a B.A. from Drew University and has completed coursework through the Corporate Finance Institute and Coursera [1]

Summary of Cencora (COR) 2025 Conference Call Company Overview - **Company**: Cencora (COR) - **Date of Conference**: May 13, 2025 - **Key Speakers**: Bob Mach (CEO), Jim Cleary (EVP and CFO), Bennett Murphy (SVP and Head of IR and Treasury) Industry Insights - **Industry**: Specialty Pharmaceuticals and Healthcare Distribution Key Points and Arguments Business Model and Pricing - The company has evolved its business model over the past decade, moving from a reliance on generics to a more diversified approach that includes fixed fee contracts and specialty medications [2][10] - The impact of potential changes to drug pricing, such as the MFN executive order, is uncertain, but the company believes it will not harm community providers or patient access [4][5][9] - Cencora has been proactive in Washington, advocating for providers and patient access to pharmaceuticals, which positions them favorably in discussions about pricing changes [6][7][8] Financial Performance - Cencora has experienced strong earnings growth, with a 23% increase in US operating income in the most recent quarter [18] - The company has outperformed its guidance multiple times this fiscal year, driven by strong utilization trends and sales of specialty products [15][17] - The company expects continued strong performance in 2025, with no significant changes anticipated compared to 2024 [16][20] Specialty and Health Systems - Cencora is well-positioned in the specialty market, particularly within health systems, which are increasingly setting up their own pharmacies [21][22] - The company provides consulting services to health systems to help them expand their pharmacy services, including specialty and infusion pharmacies [27][28] Generics and Inventory Management - Cencora maintains disciplined inventory levels and focuses on strong product access for customers, particularly in the generics market [31][32][33] - The company is cautious about potential tariffs on pharmaceuticals but is not significantly altering its inventory strategy [29][30] Operating Expenses and Growth Strategy - The company emphasizes operating leverage, aiming for operating expenses to grow slower than gross profit [36][37] - Cencora is focused on productivity initiatives to enhance efficiency as it continues to grow [39] Market Opportunities - Cencora is targeting organic growth in oncology and retina specialties, with a focus on attracting smaller physician practices [41][42] - The company is optimistic about the adoption of biosimilars in the physician space, which is already strong [49][50] Capital Deployment - Cencora plans to maintain balanced capital deployment, with approximately $600 million allocated for capital expenditures this year, primarily for technology and infrastructure [52][53] - The company has a strategy for opportunistic share repurchases and aims to grow dividends at a sustainable rate [54][55] Future Outlook - The leadership team is excited about the growth potential in specialty pharmaceuticals, driven by innovation and technology [56][57] - The focus on customer centricity and active engagement with stakeholders is expected to sustain the company's momentum [58][59] Additional Important Insights - The company has a long-term partnership with physicians in oncology and retina, which enhances its competitive position [45][46] - Cencora's unique understanding of the pharmaceutical supply chain allows it to advocate effectively for its stakeholders [7][8] This summary captures the essential insights and strategic directions discussed during the conference call, highlighting Cencora's positioning within the specialty pharmaceuticals industry and its proactive approach to market challenges.

Cencora, Inc. (COR) reported second-quarter fiscal 2025 adjusted earnings per share (EPS) of $4.42, which beat the Zacks Consensus Estimate of $4.08 by 8.3%. The bottom line also improved 16.3% year over year.GAAP EPS was $3.68, up 76.1% from the year-ago period’s level. The significant gain was primarily driven by robust top-line growth. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)Revenue DetailsRevenues totaled $75.45 billion, up 10.3% year over year. The top line beat the Z ...

Core Insights - Cencora, Inc reported a 10.3% increase in second-quarter 2025 sales to $75.5 billion, slightly missing the consensus estimate of $75.68 billion, primarily driven by an 11.4% revenue increase in the U.S. Healthcare Solutions segment [1] Financial Performance - U.S. Healthcare Solutions revenue reached $68.3 billion, attributed to market growth driven by unit volume increases, particularly in diabetes and weight loss products in the GLP-1 class, as well as specialty products sold to physician practices and health systems [2] - Adjusted EPS for the quarter was $4.42, reflecting a 16.3% year-over-year increase, surpassing the consensus estimate of $4.11 [2] - Adjusted gross profit for the second quarter was $2.9 billion, a 15.2% increase year-over-year, mainly due to growth in the U.S. Healthcare Solutions segment, although partially offset by a decline in the International Healthcare Solutions segment [3] - Adjusted gross profit margin improved to 3.86%, up 16 basis points, while adjusted operating income rose to $1.2 billion, a 15.3% increase, driven by the U.S. Healthcare Solutions segment [4] Guidance and Outlook - Cencora updated its fiscal year 2025 financial guidance, projecting adjusted diluted EPS between $15.70 and $15.95, an increase from the previous range of $15.30 to $15.60, compared to the consensus of $15.46 [5] - Revenue growth for the International Healthcare Solutions segment is now expected to be between 3% and 4%, down from the previous estimate of 4% to 5% [5] - Adjusted consolidated operating income growth is anticipated to be between 13.5% and 15.5%, an increase from the prior range of 11.5% to 13.5% [6]

Revenue Growth - Revenue increased by $7.0 billion, or 10.3%, and $16.3 billion, or 11.6%, from the prior year quarter and six-month period, primarily due to growth in the U.S. Healthcare Solutions segment[95] - The U.S. Healthcare Solutions segment grew its revenue by $7.0 billion, or 11.4%, and $15.8 billion, or 12.5%, from the prior year quarter and six-month period, driven by increased sales of GLP-1 products of $2.2 billion, or 36.1%, and $5.4 billion, or 44.5%[96] - International Healthcare Solutions' revenue increased by $0.1 billion, or 0.7%, and $0.4 billion, or 3.1%, from the prior year quarter and six-month period, primarily due to increased sales in Europe and Canada[97] Profit and Operating Income - Gross profit increased by $521.8 million, or 20.6%, and $611.0 million, or 12.2%, from the prior year quarter and six-month period, primarily due to increases in the U.S. Healthcare Solutions segment[99] - U.S. Healthcare Solutions' gross profit increased by $441.7 million, or 26.3%, and $555.5 million, or 17.1%, from the prior year quarter and six-month period, with gross profit margins of 3.11% and 2.67%[100] - U.S. Healthcare Solutions operating income rose by 22.8% to $1,033,150 for the three months ended March 31, 2025, and by 17.0% to $1,800,494 for the six months ended March 31, 2025[112] - International Healthcare Solutions operating income decreased by 17.3% to $159,301 for the three months ended March 31, 2025, and by 10.2% to $341,394 for the six months ended March 31, 2025[113] Expenses and Acquisitions - Total operating expenses increased by $38.9 million, or 2.0%, and $244.7 million, or 6.7%, from the prior year quarter and six-month period, primarily due to the January 2025 acquisition of Retina Consultants of America (RCA)[93] - Total operating expenses increased by 2.0% to $2,023,619 for the three months ended March 31, 2025, and by 6.7% to $3,875,403 for the six months ended March 31, 2025, primarily due to the acquisition of RCA[105] - Acquisition-related deal and integration expenses were $99,380 for the three months ended March 31, 2025, primarily related to the RCA acquisition[108] - The acquisition of RCA for $4,036.1 million in cash is expected to broaden relationships with community providers and enhance leadership in specialty pharmaceuticals[92] Cash Flow and Financing - Cash generated from operations for the six months ended March 31, 2025, was $632.5 million, a significant increase of $625.7 million compared to $6.7 million for the same period in 2024[122] - The company generated sufficient capital resources to finance working capital, acquisitions, and debt repayment through operating cash flows and credit availability[118] - Net cash provided by financing activities for the six months ended March 31, 2025, included $1.8 billion from senior notes issuance and $1.5 billion from term loan borrowings for the RCA acquisition[129] Tax and Interest - The effective tax rates were 22.7% and 21.8% for the three and six months ended March 31, 2025, respectively, higher than the U.S. statutory rate primarily due to U.S. state income taxes[93] - Effective tax rates were 22.7% and 21.8% for the three and six months ended March 31, 2025, respectively, compared to 9.8% and 18.1% for the same periods in 2024[117] - Interest expense, net increased by 62.2% to $103,988 for the three months ended March 31, 2025, primarily due to the issuance of $1.8 billion in senior notes and a $1.5 billion variable-rate term loan[115] Shareholder Returns - In March 2024, the Board of Directors authorized a share repurchase program allowing the company to purchase up to $2.0 billion of outstanding shares, with $435.4 million repurchased in the six months ended March 31, 2025, leaving $882.2 million available under the program[141] - The quarterly dividend was increased by 8% from $0.51 to $0.55 per share in November 2024, with future dividends dependent on earnings and financial conditions[142] Debt and Obligations - The total debt as of March 31, 2025, was $7.86 billion, with $5.35 billion available under various credit facilities[132] - Total contractual obligations for future principal and interest payments on debt, operating leases, and other commitments amount to $12.42 billion as of March 31, 2025[144] - The company had cumulative intra-period borrowings of $42.9 billion during the six months ended March 31, 2025, compared to $47.9 billion in the same period of 2024[121] Foreign Operations and Risks - Revenue from foreign operations accounted for approximately 9% of consolidated revenue during the six months ended March 31, 2025[146] - The company has exposure to foreign currency risk, primarily with the U.K. Pound Sterling, Euro, Turkish Lira, Brazilian Real, and Canadian Dollar[146] - The financial impact of geopolitical conflicts, such as those in Ukraine and Israel, has not been material to the company's operations[151] Inflation and Economic Conditions - Elevated inflation levels have impacted operating expenses, with potential adverse effects on operations and financial results if inflation persists[150] - Cash and cash equivalents stood at $2.0 billion as of March 31, 2025, with a potential increase in annual net interest expense of $0.1 million for every 10-basis point decrease in interest rates on excess cash[148]

Financial Data and Key Metrics Changes - The company reported consolidated revenue of $75.5 billion, an increase of 10% year-over-year, primarily driven by growth in the U.S. Healthcare Solutions segment [20][21] - Adjusted diluted EPS grew by 16%, prompting the company to raise its full-year guidance for adjusted operating income and EPS [5][31] - Consolidated gross profit was $2.9 billion, up 15%, with a gross profit margin of 3.86%, reflecting a 16 basis point increase [21][22] Business Line Data and Key Metrics Changes - U.S. Healthcare Solutions segment revenue was $68.3 billion, up 11%, with significant growth in GLP-1 products, which increased by $2.2 billion or 36% year-over-year [26][27] - International Healthcare Solutions segment revenue was $7.2 billion, up approximately 1% on an as-reported basis, but down 17% in operating income due to market softness [29][30] Market Data and Key Metrics Changes - The U.S. segment's growth was attributed to strong utilization trends and sales of specialty products, while the international segment faced challenges due to subdued clinical trial activity [28][29] - The company noted that clinical trial activity has been slower than expected, impacting the global specialty logistics business [74][75] Company Strategy and Development Direction - The company is focused on expanding its capabilities in specialty medications and enhancing partnerships with pharmaceutical manufacturers [14][15] - The integration of the RCA acquisition is expected to strengthen the company's position in the specialty market and improve service offerings [32][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning within the growing pharmaceutical market, particularly in specialty medications [43][44] - The company anticipates continued growth driven by strong performance in the U.S. segment, despite challenges in the international market [16][31] Other Important Information - The company ended the quarter with a cash balance of $2 billion and expects full-year adjusted free cash flow to be between $2 billion and $3 billion [25] - The effective income tax rate for the quarter was 20.8%, with expectations for the full year to be slightly below 21% [24] Q&A Session Summary Question: Strength in U.S. Healthcare business and long-term drivers - Management highlighted three key drivers for long-term performance: positioning in the specialty market, strong relationships with providers, and a committed team focused on innovation [41][46] Question: Specialty growth contributors - Management noted that growth in specialty is driven by organic growth from core distribution, utilization trends, and the recent acquisition of RCA [49][52] Question: Impact of tariffs on business - Management stated that there have been no material impacts from tariffs on their business, emphasizing their focus on ensuring patient access to medications [58][61] Question: RCA impact on gross margin - RCA's integration is expected to positively impact gross profit margins due to its higher margin business compared to core distribution [63][66] Question: International segment softness - Management acknowledged subdued clinical trial activity affecting the International Healthcare Solutions segment and indicated a slower-than-expected rebound [72][74] Question: MSO operations and profit streams - Management expressed confidence in the income streams from MSO operations, highlighting the potential for growth in clinical trial services [77][79] Question: Clinical trial activity fragmentation - Management confirmed that the decline in clinical trial activity is a market-wide phenomenon, not limited to specific customers [81][84]