Premier falls on FY2023 profit forecast cut
07/02/2023 13:07
** Premier Inc's shares PINC.O fall 7% to $30.10 premarket
after healthcare services provider cuts FY23 adjusted profit
** Cuts profit outlook for FY ending June 2023 to
$2.53-$2.65 from $2.63-$2.75 earlier, partly due to higher
depreciation of its assets and increase in interest expense
tracking rising interest rates
** Q2 supply chain services declined 13% as pandemic-led
demand and pricing for personal protective equipment (PPE) and
related supplies waned - co
** PINC aggregates purchase of equipment and supplies for
hospitals, nursing homes and other healthcare providers, which
have reduced demand for equipment like PPE kits as COVID cases
declined
** Co also plans to reduce staff count by 4%, or 100
employees
** 6 of 13 brokerages rate the stock "buy" or higher, 5
"hold" and 2 "sell"; their median PT is $40
** Up to Monday's close, stock had fallen ~12% in the last
one year
(Reporting by Leroy Leo in Bengaluru)
((Leroy.Dsouza@thomsonreuters.com ; Twitter: https://twitter.com/LeroyLeo7;))