For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Cencora (COR) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Medical peers, we might be able to answer that question.Cencora is a member of our Medical group, which includes 1023 different companies and currently sits at #3 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individua ...

Core Viewpoint - Cencora, Inc. reported strong fourth-quarter fiscal 2024 results with adjusted earnings per share (EPS) of $3.34, exceeding estimates and showing year-over-year growth, despite a significant decline in GAAP EPS due to increased operating expenses and goodwill impairment charges [1][2][13]. Revenue and Financial Performance - Revenues for the fourth quarter reached $79.1 billion, reflecting a 14.7% increase year over year and surpassing consensus estimates by 1.8% [3]. - For fiscal 2024, total revenues amounted to $294 billion, up 12.1% year over year, with adjusted EPS improving 14.8% to $13.76 [4]. Segmental Analysis - **U.S. Healthcare Solutions**: Revenues in this segment were $71.7 billion, a 15.7% increase year over year, driven by market growth and increased sales of GLP-1 drugs and specialty products [5]. - **International Healthcare Solutions**: This segment generated revenues of $7.4 billion, up 5.5% year over year, with operating income declining due to higher IT expenses and lower income from Canada, partially offset by gains in global specialty logistics [7]. Margin Analysis - Adjusted gross profit was $2.5 billion, a 6.6% increase year over year, with an adjusted gross margin of 3.1%, down 24 basis points from the previous year [8]. - Adjusted operating income rose to $851.1 million, up 6.3% year over year, with an adjusted operating margin of 1.1%, contracting 8 basis points [8]. Financial Update - Cencora ended the fiscal fourth quarter with cash and cash equivalents of $3.13 billion, down from $3.31 billion in the prior quarter [9]. - Cumulative net cash from operating activities totaled $3.48 billion, compared to $3.91 billion a year ago [10]. Dividend Update - The board declared a quarterly dividend of 55 cents per share, a 7.8% increase from the previous rate of 51 cents, payable on November 29, 2024 [10]. FY25 Guidance - The company projects adjusted EPS for fiscal 2025 to be between $14.80 and $15.10, indicating growth of 8-10% from the prior year, with revenues expected to rise 7-9% [11]. - Adjusted operating income is anticipated to improve by 5-6.5% for fiscal 2025 [12]. Strategic Developments - Cencora announced a definitive agreement to acquire Retina Consultants of America, enhancing its position in the healthcare sector [15]. - The company continues to face challenges with gross margins due to lower-margin products and rising operational expenses amid competitive pressures [16].

On Wednesday, Cencora, Inc.’s COR fourth-quarter 2024 sales increased 14.7% to $79.1 billion, beating the consensus of $77.65 billion.  The sales jump reflects a 15.7% increase in revenue within U.S. Healthcare Solutions and a 5.5% increase in revenue within International Healthcare Solutions.The company reported adjusted EPS of $3.34, up 16.8% year over year, beating the consensus of $3.22.Also Read: Opioid Settlement: Drug Distributors McKesson, Cencora, Cardinal Health To Pay $300M To Health InsurersConc ...

Financial Data and Key Metrics Changes - Cencora reported adjusted diluted EPS of $3.34 for Q4 2024, a 17% increase year-over-year, and full fiscal year 2024 adjusted diluted EPS of $13.76, a 15% increase compared to the prior fiscal year [23][24] - Consolidated revenue for Q4 was $79.1 billion, up 15%, and for the full year, consolidated revenue was $294 billion, up 12% [24][33] - Consolidated gross profit was $2.5 billion for Q4, a 7% increase, with a gross profit margin of 3.1%, down 24 basis points year-over-year [25][24] - Consolidated operating income for Q4 was $851 million, up 6%, and for the full year, operating income was $3.6 billion, an 11% increase [26][33] - Net interest expense decreased by 66% to $21 million in Q4 due to strong free cash flow and lower foreign subsidiary borrowings [27] Business Line Data and Key Metrics Changes - US Healthcare Solutions segment revenue was $71.7 billion for Q4, up 16%, driven by strong prescription utilization trends, including a 55% increase in GLP-1 product sales [29] - International Healthcare Solutions segment revenue was $7.4 billion for Q4, a 6% increase, with operating income down 9% due to higher IT expenses [30] - For the full year, US Healthcare Solutions segment operating income grew by 13%, while International Healthcare Solutions segment operating income grew by 3% [33][34] Market Data and Key Metrics Changes - The US Healthcare Solutions segment saw strong demand for specialty products, outpacing overall prescription market growth [29] - Internationally, the company is investing in its European distribution network to enhance automation and business continuity [16] Company Strategy and Development Direction - Cencora's strategy focuses on expanding its pharmaceutical-centric approach, enhancing customer relationships, and investing in specialty pharmaceuticals [10][12] - The acquisition of Retina Consultants of America (RCA) is aimed at broadening community provider relationships and enhancing clinical research capabilities [12] - The company plans to continue leading with a customer-centric approach and focus on innovation to maintain its competitive edge in healthcare [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic healthcare environment and emphasized the importance of strategic partnerships [14][19] - The company anticipates continued growth in fiscal 2025, despite headwinds from COVID-related products and potential customer losses [38][39] - Management highlighted the importance of investing in talent and resources to support business objectives and customer needs [18][20] Other Important Information - Cencora took a goodwill impairment of $418 million related to PharmaLex due to lower-than-expected growth in the outsourced pharma services market [31] - The company returned $1.9 billion to shareholders in fiscal 2024 through dividends and share repurchases, including an 8% increase in quarterly dividends [36] Q&A Session Summary Question: How does the new political landscape affect the company's strategy? - Management indicated that the strategy remains unchanged and they will continue to execute their operational strengths while adapting to the political environment [46] Question: Are the headwinds from COVID products factored into guidance? - Yes, the potential loss of an oncology customer and headwinds from COVID products are included in the guidance for fiscal 2025 [50] Question: Can you elaborate on the RCA acquisition and its strategic importance? - The RCA acquisition aligns with Cencora's focus on specialty pharmaceuticals and enhances their capabilities in supporting community providers [53] Question: How does the company view the impact of IRA changes on profitability? - Management believes that the impact of IRA changes will be manageable for providers and Cencora, with ongoing assessments of various scenarios [57] Question: What is the outlook for the specialty market? - The specialty market continues to be a key driver of growth, with strong demand from physicians and health systems [60]

Core Insights - Cencora reported $79.05 billion in revenue for Q3 2024, a year-over-year increase of 14.7% and a surprise of +1.76% over the Zacks Consensus Estimate of $77.68 billion [1] - The EPS for the quarter was $3.34, compared to $2.86 a year ago, with a surprise of +4.05% over the consensus estimate of $3.21 [1] Revenue Breakdown - Total U.S. Healthcare Solutions revenue was $71.67 billion, exceeding the average estimate of $70.29 billion, reflecting a year-over-year change of +15.7% [3] - Total International Healthcare Solutions revenue was $7.38 billion, slightly below the average estimate of $7.40 billion, with a year-over-year change of +5.5% [3] - Intersegment eliminations reported at -$3.08 million, worse than the estimated -$1.87 million, showing a significant year-over-year change of +129.4% [3] Stock Performance - Cencora's shares have returned +6% over the past month, outperforming the Zacks S&P 500 composite's +0.7% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4]

Cencora (COR) came out with quarterly earnings of $3.34 per share, beating the Zacks Consensus Estimate of $3.21 per share. This compares to earnings of $2.86 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.05%. A quarter ago, it was expected that this prescription drug distributor would post earnings of $3.18 per share when it actually produced earnings of $3.34, delivering a surprise of 5.03%.Over the last four quarters, t ...

cencora Cencora, Inc. Fourth Quarter Fiscal 2024 Earnings Call November 6, 2024 Cautionary Note Regarding Forward Looking Statements Certain of the statements contained in this presentation are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Securities Exchange Act"). Words such as "aim," "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," ...

Revenue and Earnings - Revenue for the fourth quarter of fiscal 2024 was $79.1 billion, a 14.7% year-over-year increase, with U.S. Healthcare Solutions revenue increasing by 15.7% and International Healthcare Solutions revenue increasing by 5.5%[4][19][20] - For fiscal year 2024, revenue reached $294.0 billion, reflecting a 12.1% year-over-year increase, while GAAP diluted EPS decreased to $7.53 from $8.53 in the prior fiscal year[21][22] - Adjusted diluted EPS for the fourth quarter was $3.34, a 16.8% increase compared to $2.86 in the previous fiscal year fourth quarter[16] - Total revenue for the fiscal year ended September 30, 2024, was $293,958,599, representing a 12.1% increase from the previous year[37] - U.S. Healthcare Solutions revenue reached $265,339,427, a 13.0% increase from $234,759,218 year-over-year[51] - International Healthcare Solutions revenue grew by 4.4% to $28,627,542, compared to $27,418,679 in the prior year[51] Operating Income and Expenses - Adjusted operating income for the fourth quarter was $851.1 million, a 6.3% increase compared to the same period in the prior fiscal year[14] - Operating expenses in the fourth quarter increased by 33.2% to $2.4 billion, primarily due to a $418 million goodwill impairment charge related to PharmaLex[6][21] - U.S. Healthcare Solutions segment operating income was $697.4 million, up 10.2% year-over-year, while International Healthcare Solutions segment operating income decreased by 8.6% to $153.7 million[19][20] - Operating income for fiscal 2024 was $3.6 billion, with a negative impact from foreign currency translation of $38.8 million, resulting in constant currency operating income of $3.7 billion[67] - The company achieved an operating income of $2,175,249 for the fiscal year, down 7.1% from $2,340,731 in the previous year[52] Cash Flow and Capital Expenditures - Adjusted free cash flow for the fiscal year ended September 30, 2024, was $3,064.3 million, consisting of net cash from operating activities of $3,484.7 million minus capital expenditures of $487.2 million[66] - Net cash provided by operating activities was $3,484,685 thousand for the fiscal year ended September 2024, down from $3,911,334 thousand in the previous year, a decrease of 10.9%[54] - The company reported capital expenditures of $487,173 thousand, an increase from $458,359 thousand in the previous year, indicating a rise of 6.1%[54] - Net cash used in investing activities was $618,096 thousand, significantly lower than $2,602,465 thousand in the previous year, showing a decrease of 76.3%[54] Guidance and Future Projections - Cencora's fiscal year 2025 financial guidance includes adjusted operating income growth of 5% to 6.5% and adjusted diluted EPS growth of 8% to 10%[27] - Expected revenue growth for fiscal year 2025 is projected to be in the range of 7% to 9%[27] - Adjusted diluted earnings per share is anticipated to be between $14.80 and $15.10[27] - Cencora's fiscal 2025 guidance does not currently include the impact of the RCA acquisition, which will be incorporated after the transaction closes[29] - The company provided non-GAAP fiscal year 2025 guidance for diluted earnings per share, operating income, effective income tax rate, and free cash flow, excluding significant items outside its control[68] Tax and Impairment Charges - The effective tax rate for the fourth quarter was 94.0%, significantly higher than the prior year quarter's 21.8%, primarily due to the PharmaLex goodwill impairment[9][21] - For the fiscal year ended September 30, 2024, the company reported a goodwill impairment charge of $418 million related to PharmaLex[39] - The fiscal year ended September 30, 2024, includes $263.1 million in litigation accruals, partially offset by a $92.2 million reduction in opioid settlement accruals[38] Acquisitions and Strategic Initiatives - Cencora announced the acquisition of Retina Consultants of America, enhancing its specialty healthcare capabilities[2][24] - The company anticipates continued market expansion and product development as part of its strategic initiatives moving forward[42] Assets and Liabilities - Total assets increased to $67,101,667 thousand as of September 2024, up from $62,558,746 thousand in September 2023, representing a growth of approximately 8.7%[53] - Total current liabilities increased to $54,277,053 thousand, up from $48,831,198 thousand, reflecting a rise of approximately 11.1%[53] - Long-term debt decreased to $3,811,745 thousand from $4,146,113 thousand, a reduction of approximately 8.1%[53] - Total equity increased to $786,742 thousand as of September 2024, compared to $666,287 thousand in September 2023, reflecting a growth of approximately 18.1%[53] Other Financial Metrics - Diluted weighted average shares outstanding for the fourth quarter were 198.1 million, a decrease of 2.6% compared to the prior fiscal year fourth quarter due to share repurchases[10][17] - The company reported a gain of $40.7 million from the divestiture of non-core businesses in the fiscal year ended September 30, 2023[39] - The company incurred $227,070 thousand in litigation and opioid-related expenses for the fiscal year ended September 30, 2024[45] - The company faced a goodwill impairment of $418,000 during the fiscal year, which was not present in the previous year[52] - Cash and cash equivalents rose to $3,132,648 thousand in September 2024, compared to $2,592,051 thousand in September 2023, marking an increase of 20.9%[55] - The company’s cash, cash equivalents, and restricted cash at the end of the fiscal year totaled $3,297,880 thousand, up from $2,752,889 thousand, an increase of 19.8%[55]

Cencora (COR) is slated to report fiscal fourth-quarter 2024 results on Nov. 06, before market open.In the last reported quarter, the company delivered a positive earnings surprise of 5.03%. COR’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 6.59%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Q4 EstimatesThe Zacks Consensus Estimate for revenues is pegged at $77.68 billion, up 12.7% compared with the prior-year quarter. The consensus ...

Analysts on Wall Street project that Cencora (COR) will announce quarterly earnings of $3.21 per share in its forthcoming report, representing an increase of 12.2% year over year. Revenues are projected to reach $77.68 billion, increasing 12.7% from the same quarter last year.The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this time ...