NASDAQ$PINC

Premier Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported a 6% increase in total net revenue and reaffirmed fiscal year 2024 financial guidance, despite a GAAP net loss due to a significant impairment charge.

Premier, Inc. reported a 6% increase in total net revenue for the third quarter of fiscal year 2024, driven by growth in both Supply Chain Services and Performance Services segments. However, the company experienced a GAAP net loss due to a $140.1 million impairment charge related to its Contigo Health business. Adjusted earnings per share remained flat compared to the prior-year period. The company reaffirmed its fiscal year 2024 financial guidance and executed a $400 million accelerated share repurchase transaction.

  • Total net revenue increased by 6% year-over-year to $342.6 million.
  • GAAP net loss was $49.2 million, or $(0.36) per fully diluted share, impacted by a $140.1 million impairment charge.
  • Adjusted earnings per share were $0.55, remaining flat compared to the prior-year period.
  • The company reaffirmed its fiscal year 2024 financial guidance and executed a $400 million accelerated share repurchase transaction.

Headline financials

Total Revenue

$343M

Previous: $322M+6.3%
EPS (adj)

$0.55

Previous: $0.58-5.2%
Adjusted EBITDA

$95.2M

Previous: $117M-18.8%
Adjusted Net Income

$54.9M

Previous: $69.5M-21.0%
Capital Expenditures

-$18.6M

Previous: $20M-192.6%
Net Income

-$49.2M

Previous: $48.6M-201.1%
Operating Income

-$78.7M

Previous: $62.6M-225.8%
Gross Profit

$208M

Previous: $219M-5.0%
R&D Expense

$661K

No prior period
Stock-Based Comp

$8.15M

Previous: $6.56M+24.2%

Revenue & EPS history

Premier · Revenue · Quarterly

$343M

Q3 2024+6.3%vs Q3 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

Premier, Inc. reaffirmed its fiscal 2024 guidance ranges, expecting Supply Chain Services net revenue between $840 million and $880 million, Performance Services net revenue between $425 million and $445 million, 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.

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%
  • 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

Headwinds

  • Capital expenditures of $93 million to $103 million
  • Guidance does not include the impact of any significant acquisitions or divestitures
  • Potential volatility or disruptions in the capital markets could impact the accelerated share repurchase transaction
  • Uncertainties related to future events and trends affecting the business
  • Forward-looking statements are subject to risks and uncertainties outside of Premier’s control

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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