Premier Posts Q4 Revenue Miss, Doesn't Provide Outlook On Continued Strategic Review

Premier Inc PINC reported fourth-quarter (Q4) 2023 revenue of $340.4 million, missing the consensus of $356.3 million.

Supply Chain Services segment revenue decreased by 2% Y/Y to $228.1 million due to lower product revenue.

Products revenue fell 12% Y/Y to $61.6 million due to continued excess market supply and members' and other customers' inventory levels, leading to lower demand and pricing.

On the other hand, Performance Services revenue rose 4% Y/Y to $112.32 million, led by growth in the consulting services and some adjacent markets businesses.

Adjusted EBITDA increased 8% Y/Y to $132.6 million, aided by higher Supply Chain Services adjusted EBITDA and lower corporate expenses. 

Adjusted EPS improved 11% to 68 cents, beating the consensus of 66 cents.

As of June 30, operating cash flow stood at $444.5 million, and cash and cash equivalents were $89.8 million. 

The Charlotte, North Carolina-based company paid dividends of $100.2 million to the shareholders. 

As previously disclosed and considering its ongoing strategic review, the company will not provide 2024 guidance.

In June, the company planned to divest non-healthcare GPO operations for around $800 million in cash. 

Price Action: PINC shares are trading higher by 0.44% at $24.99 on the last check Tuesday. 

Image: Premier