Cencora Q4 revenue slightly beats estimates on GLP-1 sales; raises dividend
Cencora Q4 revenue slightly beats estimates on GLP-1 sales; raises dividend
Overview
US pharmaceutical distributor's Q4 revenue rose 5.5%, slightly beating analyst expectations
Adjusted EPS for Q4 rose 21% and beat analyst expectations
Company raised its quarterly dividend by 10%
Outlook
Cencora expects fiscal 2027 adjusted diluted EPS of $19.40 to $19.75
Company forecasts fiscal 2027 revenue growth of 3% to 5%
Cencora targets 4% to 6% growth in adjusted operating income for fiscal 2027
Result Drivers
ONEONCOLOGY ACQUISITION - Co said higher gross profit margin was driven by the February 2026 acquisition of OneOncology, partly offset by increased sales of lower-margin GLP-1 products
SPECIALTY AND GLP-1 SALES - Revenue growth in U.S. Healthcare Solutions was driven by higher unit volumes, including increased sales of specialty products and GLP-1 drugs
OPERATING EXPENSES - Adjusted operating expenses rose mainly due to costs from the OneOncology acquisition
Company press release: ID:nBwbnwS5Va
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Beat* | $88.35 bln | $88.03 bln (10 Analysts) |
Q4 Adjusted EPS | Beat | $4.66 | $4.58 (12 Analysts) |
Q4 EPS |
| $2.71 |
|
Q4 Net Income |
| $529.10 mln |
|
Q4 Adjusted Operating Income | Miss | $1.20 bln | $1.24 bln (10 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"
Wall Street's median 12-month price target for Cencora, Inc. is $364.83, about 7.1% above its November 3 closing price of $340.50
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago
Reuters Recommended Reads
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Nov 3 - Senior care provider InnovAge's Q1 revenue beats as participants increase
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)