Cencora to Report Q4 Earnings: What’s in Store for the Stock?

Cencora COR is slated to report fiscal fourth-quarter 2024 results on Nov. 06, before market open.

In the last reported quarter, the company delivered a positive earnings surprise of 5.03%. COR’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 6.59%.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Q4 Estimates

The Zacks Consensus Estimate for revenues is pegged at $77.68 billion, up 12.7% compared with the prior-year quarter. The consensus mark for earnings is pinned at $3.21 per share, indicating an improvement of 12.2% from the prior-year quarter.

Factors to Consider

In the third quarter of fiscal 2024, revenues at U.S. Healthcare Solutions totaled $67.2 billion, up 12.2% year over year. The company continues to witness a strong segmental performance due to growth in all markets and strong demand for specialty products, especially GLP-1 drugs. Demand for the recently approved GLP-1 drugs for diabetes and/or weight loss is likely to grow higher in the to-be-reported quarter as well.

Per the fiscal third-quarterearnings call revenues from the U.S. Healthcare Solutions segment are expected to grow 12-13% in fiscal 2024 from the previous range of 11%-13%. Adjusted operating income for the segment is anticipated to increase 11-12% during the same time frame from the previous range of 10%-12%. This is likely to have been reflected in the fiscal fourth-quarter results. Our model expects revenues for this segment to be $70.66 billion and the segment’s adjusted operating income to be $660.4 million.

However, during the third quarter of fiscal 2024, COR’s International Healthcare Solutions segment witnessed flat revenue growth and a decline in operating income on a reported basis compared with the prior-year quarter. Per management, this was due to the continuation of higher information technology expenses for COR’s European distribution business and lower operating income at the global specialty logistics business because of less international shipments and lower weights per shipment, partially offset by positive results at Canadian business. This segmental performance is likely to have continued in the to-be-reported quarter as well.

Per the fiscal third-quarterearnings call revenues from the International Healthcare Solutions segment are expected to grow 4%-6% on a reported basis from the previous range of 4% to 7%. Adjusted operating income for the segment is anticipated to increase 5% to 7% from the previous range of 5% to 8%. The company narrowed the international operating income guidance range due to the segmental results and some softness in demand at PharmaLex. This may be reflected in the fiscal fourth-quarter results. Our model expects the segment’s adjusted operating income and revenues to be $172.9 million and $7.39 billion, respectively.

Per management, the company now expects net interest expense to be in the range of $170 million-$190 million, down from the previous range of $185 million to $215 million, driven by the company’s better-than-expected free cash flow.

Cencora, Inc. Price and EPS Surprise

Cencora, Inc. price-eps-surprise | Cencora, Inc. Quote

Earnings Beat Likely

Our proven model predicts an earnings beat for Cencora this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.38%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Cencora currently has a Zacks Rank #3.

Other Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to post earnings beat this reporting cycle.

Masimo MASI has an Earnings ESP of +0.40% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is likely to release third-quarter 2024 results on Nov. 5. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.63%. The Zacks Consensus Estimate for EPS implies an improvement of 33.3% from the year-ago reported figure.

ACADIA Pharmaceuticals ACAD has an Earnings ESP of +38.39% and a Zacks Rank #3 at present. The company is expected to release third-quarter 2024 results on Nov. 6.

ACAD’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 42.37%. The Zacks Consensus Estimate for EPS implies a surge 127.5% from the year-ago figure.

Privia Health Group PRVA has an Earnings ESP of +27.27% and a Zacks Rank #3 at present. The company is expected to release third-quarter 2024 results on Nov. 7.

PRVA’s earnings missed estimates in each of the trailing four quarters, the average negative surprise being 44.17%. The third-quarter EPS is expected to improve 20% from the year-earlier reported figure.

Research Chief Names “Single Best Pick to Double”

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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