Why Is Cencora (COR) Down 2.8% Since Last Earnings Report?

Core Viewpoint - Cencora reported strong Q3 fiscal 2024 earnings, beating estimates and raising guidance for the fiscal year, despite a recent decline in share price [2][9][10]. Financial Performance - Adjusted earnings per share (EPS) for Q3 2024 was $3.34, exceeding the Zacks Consensus Estimate of$3.18 by 5% and showing a year-over-year increase of 14.4% [2]. - Total revenues reached $74.2 billion, reflecting a 10.9$67.2 billion, up 12.2% year-over-year, driven by high demand for GLP-1 drugs [3]. Segment Analysis - Segmental operating income was $698.3 million, a 9.9$7.1 billion year-over-year, but increased by 5.8% at constant currency [4]. - Operating income for the International segment was $179.4 million, down 4.1$2.4 billion, a 6.5% increase year-over-year, with a gross margin of 3.25%, down 13 basis points from the previous year [6]. - Operating income was $672.5 million, flat year-over-year, with an operating margin of 0.91$3.31 billion, up from $2.29 billion in the prior quarter [7]. - Cumulative net cash used in operating activities was$2.48 billion, compared to $2.08 billion a year ago [7]. Dividend Update - The board declared a quarterly dividend of 51 cents per share, payable on August 26, 2024, to shareholders of record on August 9, 2024 [8]. Guidance Update - The company raised its fiscal 2024 adjusted EPS outlook to$13.55-$13.65, indicating a growth of 13-13.8% year-over-year [9]. - Revenue growth is now projected at 12%, up from previous guidance of 10-12%, with U.S. Healthcare Solutions expected to grow 12-13% [10]. - Adjusted operating income is anticipated to improve by 10-11%, with U.S. Healthcare Solutions projected to grow 11-12% [11]. Market Position - Cencora has a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [14]. - The stock has a strong aggregate VGM Score of A, reflecting good growth potential and value [13].