NASDAQ$PINC
Premier Inc · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Premier reported third quarter results, showing a decrease in revenue due to lower direct sourcing revenue, but an increase in net income driven by lower performance-related compensation expense.
Premier, Inc. reported a 7% decrease in net revenue, totaling $322.232 million for the third quarter of fiscal year 2023. However, net income increased by 24% to $48.649 million, and diluted EPS increased by 22% to $0.39. The decrease in revenue was primarily due to a decline in direct sourcing products revenue, while the increase in net income was mainly due to lower performance-related compensation expense.
- Supply Chain Services segment net revenue decreased by 14% due to lower products revenue.
- Performance Services segment net revenue increased by 9% due to growth in consulting services and adjacent markets businesses.
- Net administrative fees revenue was flat compared to the year-ago quarter.
- Premier updated its fiscal year 2023 guidance, lowering revenue and adjusted EBITDA expectations.
Headline financials
Revenue & EPS history
Premier · Revenue · Quarterly
$322M
Revenue by segment
Premier · $322M total across 2 segments · Q3 2023
- Supply Chain Services$217M-13.7%67.2%
- Performance Services$106M+8.9%32.8%
Forward guidance
Premier is lowering its fiscal 2023 guidance ranges for revenue, adjusted EBITDA, and adjusted EPS due to lower direct sourcing revenue, softening demand in performance services, and an accounting methodology change related to FFF Enterprises.
Tailwinds
- Net administrative fees revenue guidance remains unchanged at $600 million to $620 million.
- Effective income tax rate guidance remains unchanged at 26% to 27%.
- Free cash flow guidance remains unchanged at 45% to 55% of adjusted EBITDA.
- The accounting methodology change related to FFF Enterprises will not have an impact on cash flow.
- Company remains focused on executing multi-year growth strategy.
Headwinds
- Supply Chain Services segment net revenue lowered to $895 million to $925 million.
- Performance Services segment net revenue lowered to $440 million to $460 million.
- Total net revenue expected to be in the range of $1.34 billion to $1.39 billion.
- Adjusted EBITDA lowered to $490 million to $510 million.
- Adjusted EPS lowered to $2.43 to $2.55.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 2 quarterly earnings reports
-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
| Quarter | Report date | Reaction (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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