COR Q3 Earnings & Revenues Beat Estimates, '25 EPS View Raised

Core Insights - Cencora, Inc. (COR) reported strong third-quarter fiscal 2025 results, with adjusted EPS of $4.00, exceeding estimates by 5.8% and showing a year-over-year increase of 19.8% [1][8] - Total revenues reached $80.7 billion, reflecting an 8.7% year-over-year growth and surpassing consensus estimates by 0.5% [2][8] Revenue Details - The company's revenues were primarily driven by the U.S. Healthcare Solutions segment, which generated $72.9 billion, up 8.5% year over year, aided by increased sales of GLP-1 drugs and specialty products [3][8] - International Healthcare Solutions revenues amounted to $7.8 billion, marking a 10.5% year-over-year increase, with an 8.8% rise at constant currency [4][12] Segmental Analysis - U.S. Healthcare Solutions segment's operating income increased by 29.1% year over year to $901.8 million, supported by higher gross profit from increased product sales and the acquisition of RCA [4] - International Healthcare Solutions segment's operating income decreased by 12.9% to $156.2 million, attributed to lower income from global specialty logistics and consulting services [5][12] Margin Analysis - Adjusted gross profit was reported at $2.9 billion, a 20.7% increase year over year, with an adjusted gross margin of 3.55%, up 36 basis points [6] - Adjusted operating income rose to $1.1 billion, reflecting a 20.6% year-over-year increase, with an adjusted operating margin of 1.31%, expanding 13 basis points [6] Financial Update - Cencora ended the fiscal third quarter with cash and cash equivalents of $2.23 billion, up from $1.98 billion in the previous quarter [7] FY25 Guidance - The company raised its fiscal 2025 adjusted EPS guidance to a range of $15.85-$16.00, up from $15.70-$15.95, indicating strong performance in the U.S. Healthcare Solutions segment [11] - Total revenue growth is now projected at approximately 9%, with U.S. Healthcare Solutions expected to grow by 9-10% and International Healthcare Solutions by 6-7% [12][13] Dividend Update - Cencora's board declared a quarterly dividend of 55 cents per share, payable on September 2, 2025, to shareholders of record by August 15, 2025 [10] Market Performance - Despite strong earnings and revenue results, COR's shares fell 0.8% in pre-market trading, although they have gained 29.4% year-to-date compared to a 3% decline in the industry [14][17]