Welcome to Premier Inc.: Fiscal 2024 Third Quarter Report
CHARLOTTE, N.C. – Premier Inc. (NASDAQ: PINC), a leading healthcare improvement company, reported a strong performance for the fiscal 2024 third quarter ended March 31, 2024.
The company exceeded expectations with its adjusted earnings per share (EPS) of $0.55, outperforming analyst estimates by $0.07. Revenue for the quarter also surpassed expectations, reaching $342.59 million compared to the consensus estimate of $318.51 million.
Michael J. Alkire, President and CEO of Premier, attributed the 6% increase in third-quarter revenue over the prior-year period to the continued adoption of Premier’s products and services by its members and other customers.
Despite a GAAP net loss of $49.2 million, which includes an impairment charge related to the Contigo Health business, the company’s adjusted EPS remained steady compared to the previous year, showcasing its operational resilience.
For the fiscal year 2024, Premier has provided guidance indicating an anticipated adjusted EPS range of $2.06 to $2.18, with the midpoint at $2.12, slightly below the analyst consensus of $2.15. The company’s revenue guidance for the year is set at $1.26 to $1.32 billion, with the midpoint at $1.29 billion aligning closely with the consensus of $1.3 billion.
To further strengthen its financial position, Premier executed a $400 million accelerated share repurchase transaction, demonstrating confidence in its long-term value. This transaction is expected to be fully settled by the first quarter of fiscal 2025.
The performance services segment of the company experienced a significant 9% increase in net revenue, driven by enterprise license agreements. Additionally, the supply chain services segment reported a 5% increase in net revenue, primarily attributed to higher net administrative fees revenue and software license, other services, and support revenue.
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