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Why Is Cencora (COR) Up 3.1% Since Last Earnings Report?
CORCencora(COR) ZACKS·2025-03-07 17:36

Core Viewpoint - Cencora's recent earnings report shows a mixed performance with adjusted earnings per share beating estimates, while GAAP earnings per share declined significantly due to prior year credits related to litigation expenses [2][3]. Financial Performance - Adjusted earnings per share for Q1 fiscal 2025 was 3.73,exceedingtheZacksConsensusEstimateof3.73, exceeding the Zacks Consensus Estimate of 3.50 by 6.6% and improving 13.7% year over year [2]. - GAAP earnings per share was reported at 2.50,down16.12.50, down 16.1% from the previous year [2]. - Total revenues reached 81.49 billion, reflecting a year-over-year increase of 12.8% and surpassing the Zacks Consensus Estimate by 4.3% [4]. Segment Analysis - U.S. Healthcare Solutions: Revenues were 74billion,up13.674 billion, up 13.6% year over year, driven by market growth and increased sales of GLP-1 drugs and specialty products [5]. - **International Healthcare Solutions**: Revenues amounted to 7.5 billion, a 5.5% increase year over year, with operating income at 182.1million,down2.9182.1 million, down 2.9% on a reported basis [7]. Margin Analysis - Adjusted gross profit was 2.5 billion, up 6.1% year over year, with an adjusted gross margin of 3.1%, down 20 basis points from the previous year [8]. - Adjusted operating income was 949.3million,up7.2949.3 million, up 7.2% year over year, with an adjusted operating margin of 1.2%, contracting 7 basis points from the prior year [8]. Financial Update - Cash and cash equivalents at the end of Q1 were 3.22 billion, an increase from 3.13billioninthepreviousquarter[9].−Cumulativenetcashusedinoperatingactivitieswas3.13 billion in the previous quarter [9]. - Cumulative net cash used in operating activities was 2.72 billion, compared to 885.2millioninnetcashprovidedayearago[10].DividendUpdate−Cencora′sboarddeclaredaquarterlydividendof55centspershare,payableonMarch3,2025,toshareholdersofrecordonFebruary14,2025[11].FY25Guidance−Thecompanyupdateditsfiscal2025earningsandrevenueoutlook,projectingadjustedearningspershareintherangeof885.2 million in net cash provided a year ago [10]. Dividend Update - Cencora's board declared a quarterly dividend of 55 cents per share, payable on March 3, 2025, to shareholders of record on February 14, 2025 [11]. FY25 Guidance - The company updated its fiscal 2025 earnings and revenue outlook, projecting adjusted earnings per share in the range of 15.15-$15.45, indicating growth of 8-10% from the prior year [12]. - Revenue growth is now expected to be 8-10%, up from the previous guidance of 7-9% [13]. - Adjusted operating income is anticipated to improve by 11.5-13.5%, an increase from the earlier guidance of 5-6.5% [13]. Market Position - Cencora has a Zacks Rank 2 (Buy) and is expected to deliver above-average returns in the coming months despite a recent downward trend in estimates [17].