NASDAQ$PINC

Premier Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Premier reported first quarter fiscal year 2023 results, which were consistent with expectations and reflected continued progress on executing the strategy to deliver sustainable, long-term growth and value creation.

Premier, Inc. reported a 14% decrease in GAAP net revenue to $313.9 million compared to the prior year period, primarily due to the normalization of COVID-19 pandemic-driven demand and pricing for personal protective equipment. GAAP net income decreased 65% to $43.0 million, and GAAP diluted EPS decreased 63% to $0.36.

  • Supply Chain Services segment revenue declined due to normalization of direct sourcing products revenue.
  • Performance Services segment revenue increased 7% to $94.2 million.
  • Adjacent markets businesses grew 40% over the prior-year quarter.
  • GAAP net income and adjusted net income declined 65% and 21%, respectively.

Headline financials

Total Revenue

$314M

Previous: $365M-14.0%
EPS (adj)

$0.52

Previous: $0.64-18.8%
Capital Expenditures

$18.9M

Previous: $21.1M-10.1%
Free Cash Flow

$55.8M

Previous: $10.3M+442.0%
Net Income

$43M

Previous: $121M-64.6%
Operating Income

$58.5M

Previous: $72.3M-19.1%
Gross Profit

$202M

Previous: $212M-4.7%
Cash & Equivalents

$177M

Previous: $184M-4.2%
Total Assets

$3.42B

Previous: $3.57B-4.1%
Stock-Based Comp

$7.14M

Previous: $7.55M-5.5%

Revenue & EPS history

Premier · Revenue · Quarterly

$314M

Q1 2023-14%vs Q1 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Premier · $314M total across 2 segments · Q1 2023

  • Supply Chain Services
    $220M-20.6%
  • Performance Services
    $94.2M+6.7%

Forward guidance

Premier continues to expect total net revenue to be in the range of $1.38 billion to $1.45 billion, adjusted EBITDA to be in the range of $510 million to $530 million, and adjusted EPS to be in the range of $2.63 to $2.75 for fiscal year 2023.

Tailwinds

  • Net administrative fees revenue of $620 million to $640 million
  • Direct sourcing products revenue of $315 million to $345 million
  • Net revenue available under contract that represents approximately 80% to 86% of the fiscal 2023 guidance range (as provided on August 16, 2022)
  • Effective income tax rate in the range of 26% to 27%
  • Adjusted for impact of the COVID-19 pandemic, Premier’s fiscal 2023 growth expectations are in line with its previously communicated multi-year, compound annual growth rate targets of mid-to-high single digits for consolidated net revenue, adjusted EBITDA and adjusted EPS.

Headwinds

  • Capital expenditures of $90 million to $100 million
  • Free cash flow of 45% to 55% of adjusted EBITDA
  • Does not include the effect of any potential future significant acquisitions or share repurchases.
  • Premier, Inc. does not provide forward-looking guidance on a GAAP basis
  • The exact amount of these adjustments is not currently determinable but may be significant.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 2 quarterly earnings reports

Historical avg

-0.6%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-0.3%

Avg return

30 days after

44%

24 / 54 earnings

Positive

+16.6%

Q1 2025

Best reaction

-18.7%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026
Q1 2026-0.1%-0.1%
Q4 2025+7.3%+2.9%+8.1%
Q3 2025+11.8%+12.4%+12.7%
Q2 2025-14.7%-16.3%-21.7%
Q1 2025+16.6%
Q4 2024+0.4%
Q3 2024-5.4%
Q2 2024+1.3%
Q1 2024+1.1%
Q4 2023-12.0%
Q3 2023-18.7%
Q2 2023-0.2%
Q1 2023-8.4%
Q4 2022-2.1%
Q3 2022+4.3%
Q2 2022-1.8%
Q1 2022+5.4%
Q4 2021+6.6%
Q3 2021-0.5%
Q2 2021+3.6%
Q1 2021+4.7%
Q4 2020-6.9%
Q3 2020-3.5%
Q2 2020-9.4%
Q1 2020+11.6%
Q4 2019-1.7%
Q3 2019+8.4%
Q2 2019-9.4%
Q1 2019-6.8%
Q4 2018+11.2%
Q3 2018-5.3%
Q2 2018-1.2%
Q1 2018-6.0%
Q4 2017+1.4%
Q3 2017+0.4%
Q2 2017-3.4%
Q1 2017-2.6%
Q4 2016-4.9%
Q3 2016-7.0%
Q2 2016+4.6%
Q1 2016+1.1%
Q4 2015-6.4%
Q3 2015+7.2%
Q2 2015+7.7%
Q1 2015-4.5%
Q1 2013-0.8%
Q4 2012-0.8%
Q4 2014+7.8%
Q3 2013-7.9%
Q3 2014+1.0%
Q4 2013-3.4%
Q2 2013-3.4%
Q2 2014+1.8%
Q1 2014+0.1%

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