NASDAQ$PINC

Premier Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Premier's Q4 2022 performance reflected its focus on improving community health and advancing its long-term strategy.

Premier, Inc. reported a 29% decrease in GAAP net revenue to $340.7 million, a 39% decrease in GAAP net income to $30.7 million, and a 38% decrease in GAAP diluted EPS to $0.25. However, adjusted EBITDA increased by 5% to $122.8 million, and adjusted EPS increased by 2% to $0.61.

  • GAAP net revenue decreased 29% to $340.7 million.
  • Supply Chain Services segment revenue decreased 40% to $232.7 million.
  • Performance Services segment revenue increased 18% to $108.0 million.
  • GAAP net income decreased 39% to $30.7 million.

Headline financials

Total Revenue

$341M

Previous: $482M-29.2%
EPS (adj)

$0.61

Previous: $0.60+1.7%
Capital Expenditures

$26.4M

Previous: $22M+20.1%
Free Cash Flow

$83.1M

Previous: $193M-57.0%
Net Income

$30.7M

Previous: $50.7M-39.4%
Operating Income

$53M

Previous: $63.7M-16.9%
Gross Profit

$224M

Previous: $220M+1.9%
Cash & Equivalents

$86.1M

Previous: $129M-33.3%
Total Assets

$3.36B

Previous: $3.52B-4.7%
Stock-Based Comp

$8.44M

Previous: $7.82M+7.8%

Revenue & EPS history

Premier · Revenue · Quarterly

$341M

Q4 2022-29.2%vs Q4 2021
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Premier · $341M total across 2 segments · Q4 2022

  • Supply Chain Services
    $233M-40.3%
  • Performance Services
    $108M+17.7%

Forward guidance

In fiscal 2023, the company expects total net revenue to be in the range of $1.38 billion to $1.45 billion, adjusted EBITDA to be in the range of $510 million to $530 million, and adjusted EPS to be in the range of $2.63 to $2.75.

Tailwinds

  • Net administrative fees revenue of $620 million to $640 million
  • Direct sourcing products revenue of $315 million to $345 million
  • Net revenue available under contract that represents approximately 80% to 86% of the fiscal-2023 guidance range
  • Effective income tax rate in the range of 26% to 27%
  • Free cash flow of 45% to 55% of adjusted EBITDA

Headwinds

  • Capital expenditures of $90 million to $100 million
  • Does not include the effect of any potential future significant acquisitions
  • Does not include the effect of share repurchases
  • Adjusted for the impact of the COVID-19 pandemic
  • Premier’s fiscal-2023 growth expectations are in line with its previously communicated multi-year, compound annual growth rate targets of mid-to-high single digits for consolidated net revenue, adjusted EBITDA and adjusted EPS.

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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