NASDAQ$PINC

Premier Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Premier's Q3 2022 results reflected the continued normalization of Supply Chain Service revenue and Performance Services segment was affected by the timing of revenue.

Premier, Inc. reported a decrease in GAAP net revenue by 26% to $347.8 million compared to the same period last year. GAAP net income decreased by 24% to $39.1 million, and GAAP diluted EPS decreased by 18% to $0.32. The company is increasing its full-year adjusted earnings per share guidance to a range of $2.48 to $2.58.

  • GAAP net revenue decreased 26% to $347.8 million.
  • GAAP net income decreased 24% to $39.1 million.
  • GAAP diluted earnings per share (EPS) decreased 18% to $0.32.
  • Adjusted EPS decreased 11% to $0.57.

Headline financials

Total Revenue

$348M

Previous: $470M-26.0%
EPS (adj)

$0.57

Previous: $0.64-10.9%
Capital Expenditures

$18.4M

Previous: $22M-16.5%
Free Cash Flow

$119M

Previous: $54.1M+119.5%
Net Income

$39.1M

Previous: $51.4M-24.0%
Operating Income

$56.8M

Previous: $66.2M-14.2%
Gross Profit

$212M

Previous: $212M+0.3%
Cash & Equivalents

$180M

Previous: $133M+35.4%
Total Assets

$3.52B

Previous: $3.68B-4.5%
Stock-Based Comp

$14M

Previous: $13.1M+7.3%

Revenue & EPS history

Premier · Revenue · Quarterly

$348M

Q3 2022-26%vs Q3 2021
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Premier · $348M total across 2 segments · Q3 2022

  • Supply Chain Services
    $251M-32.4%
  • Performance Services
    $96.9M-1.8%

Forward guidance

Premier is increasing its Supply Chain Services segment net revenue guidance to a range of $1.02 billion to $1.03 billion, raising its guidance for total net revenue to a range of $1.41 billion to $1.45 billion, raising the bottom end of and narrowing the range for adjusted EBITDA guidance to $490 million to $500 million, and increasing adjusted EPS guidance to a range of $2.48 to $2.58.

Tailwinds

  • Supply Chain Services segment net revenue guidance increased to $1.02B - $1.03B
  • Total net revenue guidance raised to $1.41B - $1.45B
  • Adjusted EBITDA guidance raised to $490M - $500M
  • Adjusted EPS guidance increased to $2.48 - $2.58
  • Net administrative fees revenue of $580 million to $600 million

Headwinds

  • Guidance does not include the effect of any potential future significant acquisitions
  • Direct sourcing products revenue of $385 million to $405 million
  • Capital expenditures of $85 million to $90 million
  • Effective income tax rate in the range of 24% to 26%
  • Free cash flow of 45% to 55% of adjusted EBITDA

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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro