NASDAQ$PINC

Premier Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Premier's financial performance reflected ongoing discipline in managing the business to meet profitability expectations.

Premier, Inc. reported a 7% decrease in net revenue compared to the prior-year period, primarily due to a challenging revenue comparison for enterprise license agreements in the Performance Services segment and the impact of higher aggregate member fee share in the group purchasing business and continued market conditions in the direct sourcing business. The Board approved a new $1.0 billion share repurchase authorization.

  • Consolidated net revenue decreased by 7% compared to the prior-year period.
  • Net income decreased by 18% compared to the prior-year period.
  • Diluted earnings per share decreased by 17% compared to the prior-year period.
  • The Board approved a new $1.0 billion share repurchase authorization.

Headline financials

Total Revenue

$335M

Previous: $360M-6.9%
EPS (adj)

$0.60

Previous: $0.72-16.7%
Adjusted EBITDA

$114M

Previous: $141M-18.8%
Capital Expenditures

-$27.8M

Previous: $19.5M-242.7%
Net Income

$52.9M

Previous: $64.4M-17.9%
Operating Income

$65.7M

Previous: $88.2M-25.5%
Gross Profit

$221M

Previous: $243M-8.8%
R&D Expense

$928K

No prior period
Stock-Based Comp

$8.38M

Previous: $2.68M+212.7%

Revenue & EPS history

Premier · Revenue · Quarterly

$335M

Q2 2024-6.9%vs Q2 2023
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Premier · $319M total across 2 segments · Q1 2024

  • Supply Chain Services
    $211M-4.0%
  • Performance Services
    $108M+14.7%

Forward guidance

The company expects total net revenue between $1.265 billion and $1.325 billion, adjusted EBITDA between $405 million and $425 million, and adjusted EPS between $2.06 and $2.18 for fiscal year 2024.

Tailwinds

  • Net administrative fees revenue of $588 million to $603 million
  • Direct sourcing products revenue of $207 million to $222 million
  • Supply Chain Services segment software licenses, other services and support revenue of $45 million to $55 million
  • Effective income tax rate in the range of 26-28%
  • Includes the estimated fiscal 2024 impact of the initial $400 million accelerated share repurchase transaction under the $1 billion share repurchase authorization

Headwinds

  • Capital expenditures of $93 million to $103 million
  • Free cash flow of 45% to 55% of adjusted EBITDA, excluding the impact of tax payments related to the sale of non-healthcare GPO operations
  • Does not include the impact of any significant acquisitions or divestitures
  • Guidance for non-GAAP adjusted EBITDA and non-GAAP adjusted earnings per share is not meaningfully reconciled to net income attributable to stockholders or earnings per share attributable to stockholders
  • Adjustments may be affected by changes in ongoing assumptions, judgements, as well as nonrecurring, unusual or unanticipated charges, expenses or gains/losses or other items that may not directly correlate to the underlying performance of our business operations.

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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