Why Is Cencora (COR) Down 6.3% Since Last Earnings Report?

Core Viewpoint - Cencora's recent earnings report shows a mixed performance with adjusted earnings per share beating estimates, but GAAP loss per share indicates rising operating expenses. The company is facing a downward trend in estimates since the earnings release, raising questions about future performance [2][12]. Financial Performance - Cencora reported fourth-quarter fiscal 2025 adjusted earnings per share of $3.84, exceeding the Zacks Consensus Estimate of $3.74 by 2.7% and showing a 15% year-over-year improvement [2] - For the full year fiscal 2025, adjusted earnings per share reached $16.00, up 16.3% year over year, while GAAP earnings per share was $7.96 compared to $7.53 in the previous year [3] - Total revenues for the fourth quarter were $83.73 billion, a 5.9% increase year over year, and for the full year, revenues totaled $321.33 billion, up 9.3% year over year [4] Segment Analysis - In the U.S. Healthcare Solutions segment, revenues were $75.8 billion, reflecting a 5.7% year-over-year increase driven by market growth and improved sales of GLP-1 drugs and specialty products [5] - The International Healthcare Solutions segment generated revenues of $7.9 billion, up 7.6% year over year, with a 5.7% increase at constant currency [6] Margin and Operating Income - Cencora's adjusted gross profit was $2.9 billion, an 18.4% year-over-year increase, with an adjusted gross margin of 3.55%, up 36 basis points year over year [8] - Adjusted operating income reached $1.1 billion, a 20.6% increase year over year, with an adjusted operating margin of 3.47%, expanding 37 basis points from the previous year [8] Financial Update - The company ended the fiscal fourth quarter with cash and cash equivalents of $4.36 billion, up from $2.23 billion in the previous quarter [9] - Cumulative net cash used in operating activities was $4.98 billion compared to $618.1 million a year ago [9] Guidance for Fiscal 2026 - Cencora projects adjusted earnings per share for fiscal 2026 to be in the range of $17.45-$17.75, with total revenues expected to rise by 5-7% [10] - The U.S. Healthcare Solutions segment is anticipated to grow by 5-7%, while the International Healthcare Solutions business is projected to increase by 6-8% [10][11] Market Position and Estimates - Cencora has a Zacks Rank 2 (Buy) and an aggregate VGM Score of A, indicating strong growth potential despite recent downward estimate revisions [13][14]