Cencora(US:COR) ZACKSยท2025-02-05 17:51Core Viewpoint - Cencora, Inc. reported strong first-quarter fiscal 2025 results, with adjusted earnings per share (EPS) exceeding estimates and revenue growth driven by U.S. Healthcare Solutions and specialty products [1][3][14]. Financial Performance - Adjusted EPS for Q1 fiscal 2025 was $3.73, beating the Zacks Consensus Estimate of $3.50 by 6.6% and improving 13.7% year over year [1]. - GAAP EPS was $2.50, down 16.1% from the previous year, primarily due to the absence of a $78.9 million credit related to litigation and opioid expenses recorded in the prior quarter [1]. - Total revenues reached $81.49 billion, reflecting a 12.8% year-over-year increase and surpassing the Zacks Consensus Estimate by 4.3% [3]. Segmental Analysis - U.S. Healthcare Solutions: Revenues totaled $74 billion, up 13.6% year over year, driven by increased unit volume and sales of GLP-1 drugs and specialty products [4]. - International Healthcare Solutions: Revenues amounted to $7.5 billion, a 5.5% year-over-year increase, with operating income at $182.1 million, down 2.9% on a reported basis but up 3.3% at constant currency [6]. Margin Analysis - Adjusted gross profit was $2.5 billion, up 6.1% year over year, with an adjusted gross margin of 3.1%, down 20 basis points from the previous year [7]. - Adjusted operating income was $949.3 million, up 7.2% year over year, with an adjusted operating margin of 1.2%, contracting 7 basis points from the year-ago quarter [7]. Financial Update - Cencora ended the fiscal first quarter with cash and cash equivalents of $3.22 billion, an increase from $3.13 billion in the previous quarter [8]. - Cumulative net cash used in operating activities was $2.72 billion, compared to $885.2 million in net cash provided by operating activities a year ago [8]. Dividend Update - The board declared a quarterly dividend of 55 cents per share, payable on March 3, 2025, to shareholders of record as of February 14, 2025 [10]. FY25 Guidance - The company updated its fiscal 2025 earnings and revenue outlook, projecting adjusted EPS in the range of $15.15-$15.45, indicating growth of 8-10% from the prior year [11]. - Revenue growth is now expected to be 8-10%, up from the previous guidance of 7-9%, with U.S. Healthcare Solutions projected to grow 9-11% [12]. - Adjusted operating income is anticipated to improve by 11.5-13.5%, up from earlier guidance of 5-6.5% [12][13]. Market Performance - Following the robust quarterly results, Cencora's shares increased by 0.8%, with a 4.9% gain over the past six months, contrasting with a 12.8% decline in the industry [14].