NASDAQ$PINC

Premier Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Premier Inc. reported solid performance in the fiscal second quarter, driven by growth in the Supply Chain Services segment, which offset softness in the Performance Services segment.

Premier Inc. reported a 4% increase in GAAP net revenue to $319.6 million. GAAP net income was $91.6 million. Non-GAAP adjusted EBITDA increased 4% to $148.4 million, and non-GAAP adjusted fully distributed earnings per share increased 10% to $0.74.

  • GAAP net revenue increased 4% to $319.6 million year-over-year.
  • Supply Chain Services segment revenue increased 9% to $232.6 million year-over-year.
  • Performance Services segment revenue decreased 8% to $87.0 million year-over-year.
  • Non-GAAP adjusted fully distributed earnings per share increased 10% to $0.74 year-over-year.

Headline financials

Total Revenue

$320M

Previous: $422M-24.2%
EPS (adj)

$0.74

Previous: $0.66+12.1%
Adjusted EBITDA

$148M

Previous: $143M+3.8%
Capital Expenditures

$22.8M

Previous: $22M+3.3%
Free Cash Flow

$97M

Previous: $126M-23.0%
Net Income

$91.6M

Previous: $42.2M+117.1%
Operating Income

$121M

Previous: $98.8M+22.0%
Gross Profit

$219M

Previous: $223M-1.7%
Cash & Equivalents

$112M

Previous: $111M+0.9%
Total Assets

$2.62B

Previous: $2.64B-1.1%
Stock-Based Comp

$7.78M

Previous: $7.82M-0.6%

Revenue & EPS history

Premier · Revenue · Quarterly

$320M

Q2 2020-24.2%vs Q2 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Premier · $320M total across 2 segments · Q2 2020

  • Supply Chain Services
    $233M+9.4%
  • Performance Services
    $87M-8.3%

Forward guidance

Premier Inc. updated its full-year fiscal 2020 financial guidance, anticipating growth in Supply Chain Services segment revenue and a decline in Performance Services segment revenue. Consolidated net revenue is expected to increase, and non-GAAP adjusted EBITDA and fully distributed EPS are affirmed.

Tailwinds

  • Supply Chain Services segment revenue is expected to increase to a range of $895.0 million to $930.0 million, indicating anticipated year-over-year growth of 5% to 9%.
  • Net administrative fees and products revenue are projected to have stronger-than-previously-anticipated growth, with year-over-year growth at 2% to 6% percent and 11% to 15%, respectively.
  • Consolidated net revenue is expected to increase to a range of $1,235.0 billion to $1,284.0 billion, reflecting anticipated year-over-year growth of 1% to 5%, due to the anticipated strong Supply Chain Services segment revenue growth.
  • Non-GAAP adjusted EBITDA is affirmed at $566.0 million to $589.0 million, indicating anticipated year-over-year growth of 1% to 5%.
  • Non-GAAP adjusted fully distributed earnings per share is affirmed at $2.76 to $2.89, indicating anticipated year-over-year growth of 4% to 9%.

Headwinds

  • Performance Services segment revenue is expected to decrease to a range of $340.0 million-to-$354.0 million, indicating an anticipated year-over-year decline of 2% to 6%.
  • The decline in Performance Services is resulting from expected slower-than-planned growth in the segment’s technology and consulting businesses.
  • The decline in Performance Services is resulting from the slow ramp up of the company’s Contigo direct-to-employer, high-value care network initiative.
  • Non-GAAP adjusted EBITDA guidance range incorporates the expected negative impact of $11.0 million to $13.0 million due to expenses associated with the Acurity and Nexera acquisitions.
  • Non-GAAP adjusted fully distributed earnings per share guidance range incorporates the expected negative impact of $0.05 to $0.08 associated with the Acurity and Nexera acquisitions.

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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