ZACKS·2025-05-05 12:25Core Viewpoint - Cencora (COR) is expected to report second-quarter fiscal 2025 results on May 7, with anticipated revenue of $74.82 billion, reflecting a 9.4% year-over-year increase, and earnings per share of $4.08, indicating a 7.4% improvement from the prior year [1][2] Group 1: Financial Performance - Cencora's U.S. Healthcare Solutions segment is projected to have achieved 14% revenue growth to $74 billion and a 10% increase in segment operating income, driven by strong demand for specialty distribution and GLP-1 drugs [2][3] - The company is expected to report revenues of $66.61 billion for the GLP-1 drug segment, with adjusted operating income estimated at $901.9 million [4][7] - The international Healthcare Solutions segment is anticipated to show 5.5% revenue growth, but a 3% decrease in reported operating income, primarily due to a stronger U.S. dollar affecting reported growth [5] Group 2: Market Dynamics - Cencora's strong distribution execution and the growing adoption of biosimilars position the company for consistent revenue performance [3] - The company faces challenges from declining COVID-19 vaccine contributions, which may negatively impact segment sales and margins [4] - A continuation of softer performance in specialty logistics, particularly World Courier, is expected due to muted activity in clinical trials and cell and gene therapies [6] Group 3: Earnings Expectations - The model predicts an earnings beat for Cencora, supported by a positive Earnings ESP of +0.82% and a Zacks Rank of 2 (Buy) [8][9]