Financial Performance - Total net revenue for Q2 FY2025 was $240.3 million, a decrease of 14% from $279.9 million in Q2 FY2024[9] - GAAP net loss from continuing operations was $45.8 million, a decline of 191% compared to a net income of $50.4 million in the prior-year period, primarily due to a $126.8 million impairment charge[10] - Adjusted EBITDA for Q2 FY2025 was $50.1 million, down 48% from $96.4 million in Q2 FY2024, mainly due to lower net administrative fees revenue[12] - Supply Chain Services segment net revenue decreased 11% to $148.7 million from $166.2 million in the prior-year period[14] - Performance Services segment net revenue fell 19% to $91.5 million from $113.6 million in the prior-year period, driven by lower demand in consulting[18] - Adjusted earnings per share (EPS) was $0.25, a decrease of 51% from $0.51 in the prior-year period[13] - Net revenue for the three months ended December 31, 2024, was $240.3 million, a decrease of 14.1% compared to $279.9 million for the same period in 2023[52] - Gross profit for the six months ended December 31, 2024, was $351.6 million, down 16.0% from $418.8 million in the prior year[52] - Operating loss for the three months ended December 31, 2024, was $(92.8) million, compared to an operating income of $62.9 million for the same period in 2023[52] - Net loss attributable to stockholders for the three months ended December 31, 2024, was $(96.0) million, compared to a net income of $54.3 million in the same period last year[52] - The company reported a basic loss per share attributable to stockholders of $(1.01) for the three months ended December 31, 2024, compared to earnings of $0.45 in the same period last year[52] Cash Flow and Liquidity - Net cash provided by operating activities from continuing operations was $193.7 million for the first six months of FY2025, significantly up from $15.5 million in the prior-year period[20] - Cash and cash equivalents as of December 31, 2024, were $85.9 million, down from $125.1 million as of June 30, 2024[19] - Free cash flow for the six months ended December 31, 2024, was $73.9 million, an increase from $40.7 million in the prior-year period[22] - Cash and cash equivalents at the end of the period decreased to $85.850 million in 2024 from $371.110 million in 2023, a decline of 76.9%[56] - The net cash used in financing activities was $(178.689) million in 2024, a significant decrease from the net cash provided of $294.982 million in 2023[56] Shareholder Returns - The company repurchased a total of 19.9 million shares of Common Stock for $400.0 million under an accelerated share repurchase transaction[23] - As of December 31, 2024, the company had repurchased an additional 9.2 million shares for $192.1 million in market transactions[24] - Aggregate dividends paid to holders of Common Stock during the first half of fiscal 2025 amounted to $42.4 million[25] - The Board declared a quarterly cash dividend of $0.21 per share, payable on March 15, 2025[25] Business Strategy and Outlook - The company reaffirmed guidance midpoints for total net revenue excluding Contigo Health at $940 million to $1.01 billion for FY2025[7] - The midpoint of adjusted EPS guidance was increased by $0.08 to a range of $1.26 to $1.34 for FY2025[7] - The company plans to divest a majority interest in the Contigo Health business, with ongoing contributions included in current financial results[45] - The company expects that the Contigo Health business will be moved into discontinued operations in fiscal 2025, impacting future financial guidance[48] - The company anticipates continued challenges in revenue growth and profitability due to market conditions and operational adjustments[51] Non-GAAP Measures - Adjusted EBITDA and free cash flow are used as indicators of operational strength and performance, excluding certain non-recurring and non-cash items[33] - The company’s non-GAAP financial measures are intended to provide a more complete understanding of factors and trends affecting its business[29] - Adjusted EBITDA for the six months ended December 31, 2024, was $112.518 million, down from $189.727 million in 2023, a decrease of 40.6%[62] - Adjusted net income for the three months ended December 31, 2024, was $23.8 million, compared to $60.7 million for the same period in 2023, representing a decline of 60.7%[64] - Adjusted earnings per share excluding Contigo Health for the three months ended December 31, 2024, was $0.27, down from $0.53 in the same period of 2023[67] - The company reported an adjusted EBITDA excluding Contigo Health of $116.7 million for the six months ended December 31, 2024, compared to $193.8 million in the same period of 2023, reflecting a decline of 39.8%[67]

Core Viewpoint - Premier, Inc. is under investigation for potential securities fraud and unlawful business practices following disappointing financial results for Q2 of fiscal year 2025, which led to a significant drop in stock price [1][2][3]. Financial Performance - Premier reported revenue of $240.3 million for the second quarter ended December 31, 2024, reflecting a decline of 3.2% year over year and missing consensus estimates by $2.91 million [2]. - The company experienced a GAAP net loss from continuing operations of $45.8 million, equating to a loss of $0.60 per fully diluted share, which included a $126.8 million impairment charge to goodwill related to its data and technology business [2]. Market Reaction - Following the announcement of the financial results, Premier's stock price fell by $3.29 per share, or 14.69%, closing at $19.11 per share on February 4, 2025 [3].

Financial Performance - Net revenue for the three months ended December 31, 2024, was $240.3 million, a decrease of 14.1% compared to $279.9 million for the same period in 2023[19]. - Gross profit for the six months ended December 31, 2024, was $351.6 million, down 16.0% from $418.8 million in the prior year[19]. - The company reported a net loss of $85.2 million for the three months ended December 31, 2024, compared to a net income of $52.9 million in the same period of 2023[19]. - Total net revenue for the three months ended December 31, 2024, was $240.3 million, a decrease of 14.1% from $279.9 million in 2023; for the six months, revenue was $488.4 million, down 11% from $548.9 million[113]. - Non-GAAP Adjusted EBITDA for the three months ended December 31, 2024, was $50.1 million, down from $96.4 million in 2023; for the six months, it decreased from $189.7 million to $112.5 million[118]. Assets and Liabilities - Total assets decreased from $3,401,449 thousand as of June 30, 2024, to $3,142,375 thousand as of December 31, 2024, representing a decline of approximately 7.6%[17]. - Total liabilities decreased slightly from $1,439,218 thousand to $1,424,484 thousand, a decrease of about 1.0%[17]. - Stockholders' equity decreased from $1,962,231 thousand to $1,717,891 thousand, a decline of approximately 12.4%[17]. - Cash and cash equivalents decreased from $125,146 thousand to $85,850 thousand, a reduction of about 31.5%[17]. - The net carrying value of intangible assets decreased from $269.3 million as of June 30, 2024, to $250.1 million as of December 31, 2024[68]. Revenue and Expenses - Operating expenses increased significantly to $264.0 million for the three months ended December 31, 2024, compared to $151.0 million in the same period of 2023, representing a 74.3% increase[19]. - The company reported a significant increase in selling, general, and administrative expenses, which rose to $253.8 million for the three months ended December 31, 2024, compared to $137.7 million in the same period of 2023[19]. - Research and development expenses were relatively stable, totaling $726,000 for the three months ended December 31, 2024, compared to $928,000 in the same period of 2023[19]. - Stock-based compensation expense for the six months ended December 31, 2024, was $9,519 thousand, down from $15,070 thousand in 2023[26]. - Stock-based compensation expense for the three months ended December 31, 2024, was $2.6 million, down from $8.4 million in the same period of 2023[94]. Cash Flow and Financing - The company reported a net cash provided by operating activities of $179,315 thousand for the six months ended December 31, 2024, compared to $35,380 thousand in 2023[26]. - The Company had $100.0 million in outstanding borrowings under the Credit Facility at December 31, 2024, with a weighted average interest rate of 5.938%[73]. - The Company repurchased Class A common stock totaling $189,754 thousand during the financing activities[26]. - The Company announced a share repurchase authorization of up to $1.0 billion, with an initial agreement to repurchase $400.0 million of its Common Stock[84]. - During the quarter ended December 31, 2024, the Company repurchased 6.3 million shares at an average price of $21.35 per share, totaling $134.1 million[86]. Discontinued Operations - The company incurred a loss on disposal of its direct sourcing subsidiary, S2S Global, amounting to $51.7 million, recorded within net income from discontinued operations[31]. - The net revenue from discontinued operations for the three months ended December 31, 2024, was $0, compared to $54.874 million for the same period in 2023[40]. - The company reported a net loss from discontinued operations, net of tax, attributable to stockholders of $39.389 million for the three months ended December 31, 2024[40]. - The company recognized a gross profit of $7.402 million from discontinued operations for the three months ended December 31, 2024[40]. - The company recorded a loss on disposal of S2S Global amounting to $51.7 million during the three months ended December 31, 2024[39]. Future Outlook and Strategy - The company is focusing on maintaining and adding new GPO members, which is critical for revenue generation from administrative fees[11]. - Future growth may be impacted by competition and the consolidation in the healthcare industry, which could limit market share expansion[11]. - The company is exploring new product offerings and the integration of artificial intelligence to enhance service delivery and operational efficiency[11]. - The estimated amortization expense for the next five fiscal years totals $250.1 million, with $19.0 million estimated for fiscal year 2025[70]. - The Company sold its non-healthcare GPO member agreements to OMNIA for a total purchase price of $723.8 million, all of which has been received as of December 31, 2024[78]. Taxation - Income tax benefit for the three months ended December 31, 2024, was $18.0 million, compared to an expense of $18.3 million for the same period in 2023, reflecting effective tax rates of 28% and 27% respectively[13]. - For the six months ended December 31, 2024, income tax expense was $4.7 million, significantly lower than $32.1 million for the same period in 2023, with effective tax rates of 15% and 26% respectively[104]. Risk Management - The company does not expect changes in interest rates to have a material impact on its results of operations or financial position[261]. - The company plans to mitigate default, market, and investment risks by investing in low-risk securities[261]. - The company does not hold any material derivative financial instruments[261]. - The company is not currently involved in any material litigation, but may face regulatory inquiries or investigations that could adversely affect its business[109].

Core Insights - Premier, Inc. reported a revenue of $240.27 million for the quarter ended December 2024, reflecting a year-over-year decline of 28.2% and an EPS of $0.27 compared to $0.60 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $244.03 million, resulting in a surprise of -1.54%, while the EPS also missed the consensus estimate of $0.29 by -6.90% [1] Financial Performance Metrics - Net Revenue from Supply Chain Services - Net administrative fees was $131.42 million, exceeding the average estimate of $126.62 million, but showing a year-over-year decline of 12.1% [4] - Total Net Revenue from Supply Chain Services was $148.75 million, surpassing the average estimate of $144.61 million, but down 31.7% year-over-year [4] - Net Revenue from Software licenses, other services, and support was $108.85 million, below the estimated $144.61 million, representing a decline of 32.8% compared to the previous year [4] - Net Revenue from Supply Chain Services - Software licenses, other services, and support was $17.33 million, slightly below the average estimate of $17.95 million, but showing a year-over-year increase of 38.5% [4] - Net Revenue from Performance Services was $91.52 million, lower than the average estimate of $99.42 million, reflecting a year-over-year decline of 21.8% [4] - Adjusted EBITDA for Supply Chain Services was $73.74 million, exceeding the average estimate of $71.39 million [4] - Adjusted EBITDA for Performance Services was $9.12 million, significantly below the average estimate of $20.03 million [4] - Adjusted EBITDA for Corporate was -$32.77 million, worse than the average estimate of -$31.27 million [4] Stock Performance - Shares of Premier have returned +5.3% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Premier (PINC) Q2 2025 Earnings Call February 04, 2025 08:00 AM ET Company Participants Benjamin Krasinski - Director, Investor RelationsMichael Alkire - President & CEOGlenn Coleman - CFO & CAOKevin Caliendo - Managing DirectorRichard Close - Managing DirectorBill Sutherland - Director of Research Conference Call Participants Michael Cherny - Senior Managing Director & Senior Research AnalystEric Percher - Research Analyst - Pharma Supply Chain and HCITEric Coldwell - Senior Research AnalystJessica Tassan ...

Core Insights - Premier, Inc. reported quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.29 per share, and down from $0.60 per share a year ago, representing an earnings surprise of -6.90% [1] - The company posted revenues of $240.27 million for the quarter, missing the Zacks Consensus Estimate by 1.54%, and down from $334.75 million year-over-year [2] - Premier shares have increased by approximately 5.7% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $247.42 million, and for the current fiscal year, it is $1.31 on revenues of $991.44 million [7] - The estimate revisions trend for Premier is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Medical Services industry, to which Premier belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Cencora, another company in the same industry, is expected to report quarterly earnings of $3.50 per share, reflecting a year-over-year change of +6.7%, with revenues anticipated to be $78.12 billion, up 8.1% from the previous year [9][10]

Fiscal 2025 Second-Quarter Earnings Conference Call February 4, 2025 © 2025. ALL RIGHTS RESERVED. | PREMIER INC. | 1 Forward-Looking Statements and Non-GAAP Financial Measures Forward-looking statements – Statements made in this presentation and the accompanying webcast that are not statements of historical or current facts, such as those related to our ability to advance our business strategies and improve healthcare, our ability to find a partner for our Contigo Health business and the potential benefits ...

A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.Analyst’s Disclosure: I/we have a beneficial long position in the shares of AGNC either through stock ownership, options, or other derivatives. I wrote this ...

BellRing Brands, Inc. (BRBR) is set to release its first-quarter fiscal 2025 results on Feb. 3, after market close.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The global convenient nutrition category leader posted adjusted earnings of 51 cents per share in the last reported quarter, which surpassed the Zacks Consensus Estimate by 2%. The company topped earnings estimates in the trailing four quarters, the average surprise being 16.84%.BRBR’s Q1 EstimatesFor the first quarter of fi ...

AI Stocks Overview - Not all early-stage risers in AI are guaranteed to be long-term winners, as evidenced by the mixed outlook on Wall Street [1][2] - AI technology enables software and systems to make split-second decisions without human intervention, with wide-reaching utility across industries [2] - Three premier AI stocks are expected to see significant declines in 2025, based on low-water price targets from Wall Street analysts [3] Super Micro Computer (SMCI) - Super Micro Computer is expected to see a 55% decline in 2025, with a price target of $15 per share [4] - The company is well-positioned to benefit from the AI revolution, with net sales surging 110% to nearly $15 billion in fiscal 2024 [5] - Super Micro Computer utilizes Nvidia's GPUs in its rack servers, enhancing their desirability [6] - The company faced allegations of "accounting manipulation" in a research report by Hindenburg Research, though an independent committee found no evidence of misconduct [7] - Competition in data center infrastructure is increasing, suggesting a cautious approach is warranted [8] Palantir Technologies (PLTR) - Palantir Technologies may see an 86% decline in 2025, with a price target of $11 per share [9] - The company's stock has gained 1,140% over the past two years, driven by its unique operating model and AI-driven platforms (Gotham and Foundry) [9][11] - Palantir has shifted to recurring profitability ahead of schedule, supported by multiyear contracts with the U.S. government [12] - The company's valuation is a concern, with a price-to-sales (P/S) ratio of nearly 73, which is historically unsustainable [14] - Long-term growth for Gotham is limited by geopolitical restrictions, as non-allies of the U.S. are unlikely to gain access [13] SoundHound AI (SOUN) - SoundHound AI is forecasted to decline by 66% in 2025, with a price target of $7 per share [16] - The company has seen parabolic growth, driven by its position in the next stage of AI evolution, particularly in AI voice recognition and conversational technologies [17] - Sales grew 89% in Q3 2024, with revenue diversification reducing reliance on its largest customer [18] - SoundHound AI is not profitable and is burning through cash, with $75.7 million used in operating activities in the first nine months of 2024 [19] - The company's valuation is concerning, with a P/S ratio of 94, indicating an unsustainable recent climb in share price [20] - Historical trends suggest that early-stage innovations often face overestimation and eventual corrections, which could impact SoundHound AI [21]