Drug Wholesale Firm Cencora Starts 2024 With Strong Growth, Lifts Annual Forecast On Commercial COVID-19 Vaccine Distribution

Cencora Inc’s COR, formerly AmerisourceBergen Corporation, first quarter 2024 adjusted EPS reached $3.28, up from $2.71 Y/Y, beating the consensus of $2.89.

In the first quarter, revenue was $72.3 billion, up 15% Y/Y, beating the consensus of $69.17 billion, reflecting a 15.9% increase in revenue within U.S. Healthcare Solutions and a 6.9% increase in revenue within International Healthcare Solutions.

The adjusted gross profit margin was 3.31%, a decrease of 7 basis points from the prior-year quarter, due to the decline in the U.S. Healthcare Solutions gross profit margin related to increased sales of products labeled for diabetes and/or weight loss in the GLP-1 class, which have lower gross profit margins, partially offset by increased sales of COVID-19 vaccines, which have higher gross profit margins.

The adjusted operating income was $885.7 million, a 20.7% increase on a Y/Y basis.

Guidance: Cencora is updating its fiscal year 2024 financial guidance to reflect its expected strong business performance for the full fiscal year, including the incremental contributions from commercial COVID-19 vaccine distribution in the first quarter.

Cencora expects FY24 revenue growth of 10%-12%, up from the prior guidance of 7%-10% on a constant currency basis.

U.S. Healthcare Solutions revenue growth to be 11%-13%, up from a previous range of 7%-10%.

The company sees FY24 adjusted EPS of $13.25-$13.50, compared to the prior guidance of $12.70-$13.00, versus the consensus of $12.91.

Adjusted consolidated operating income growth to be 8%-10%, up from the previous range of 4%-6%.

Price Action: COR shares are up 4.41% at $230.26 on the last check Wednesday.

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