CHARLOTTE, N.C. - Premier, Inc. (NASDAQ: PINC), a prominent player in healthcare improvement, announced the appointment of Glenn Coleman as Chief Administrative and Financial Officer, effective November 11, 2024. Coleman will take over from Craig McKasson, who is set to retire on December 31, 2024, after serving the company since 1997.
Coleman, a Certified Public Accountant, possesses over 30 years of financial and industry experience. He is transitioning from his current role as Executive Vice President and Chief Financial Officer of Dentsply Sirona. His career includes significant tenures at Integra LifeSciences Holdings Corporation, Curtiss-Wright (NYSE:CW) Corporation, and Alcatel-Lucent (EPA:ALUA), starting at PricewaterhouseCoopers LLP.
Michael J. Alkire, President and CEO of Premier, expressed confidence in Coleman's ability to advance the company's growth, citing his extensive experience in managing public company finances. Alkire also acknowledged McKasson's pivotal role in Premier's evolution and his contributions to the healthcare system in the U.S.
McKasson reflected on his tenure with Premier, expressing pride in the company's current position and its strategy for sustainable value creation. He looks forward to his retirement and continuing to serve as a strategic advisor through 2026.
Coleman shared his respect for Premier's commitment to healthcare innovation and cost-quality outcomes, expressing enthusiasm for joining the company at a transformative time.
Premier, Inc., headquartered in Charlotte, N.C., is a key innovator in the healthcare sector, providing data, analytics, supply chain solutions, and consulting services. The company unites over 4,350 U.S. hospitals and health systems and approximately 300,000 providers and organizations.
On the same day, Premier reported its fiscal fourth quarter and full year 2024 financial results, with a conference call scheduled to discuss the performance. The announcement is based on a press release statement from Premier, Inc.
In other recent news, Premier Inc. has made significant changes to its executive compensation structure. The modifications, which include incorporating company net revenue as a new criterion for performance-based restricted stock unit awards, aim to emphasize the company's growth in both revenue and profitability. These adjustments came after feedback from stockholders and other considerations. The changes are effective for the upcoming fiscal year.
In financial news, Premier Inc. reported second-quarter earnings per share (EPS) of $3.30, surpassing the consensus estimate of $3.07. Despite a slight decrease from the same quarter last year, the company also experienced a revenue increase of 5%. In response to these earnings, Argus has raised the stock price target for Premier Inc. to $195 and reiterated a Buy rating on the stock.
However, not all analysts share the same optimism. Piper Sandler has reduced its shares target from $24.00 to $22.00 due to concerns about the potential impact on adjusted EBITDA for the fiscal year 2025. Similarly, Canaccord Genuity has downgraded Premier Inc.'s stock from Buy to Hold and reduced the price target to $21.00, following the company's challenging outlook for fiscal year 2025. These are among the recent developments shaping Premier Inc.'s financial landscape.
InvestingPro Insights
Amidst the leadership transition at Premier, Inc. (NASDAQ: PINC), the company's financial health and investor sentiment remain key points of interest. With a market capitalization of $2.1 billion and a noteworthy P/E ratio of 29.26, Premier stands out in the healthcare improvement sector. Notably, the adjusted P/E ratio for the last twelve months as of Q3 2024 drops to a more attractive 7.13, suggesting a potential undervaluation relative to earnings.
Investors looking for stable returns may find Premier's consistent dividend increases appealing; the company has raised its dividend for four consecutive years, with a current yield of 4.2% as of the last recorded date. This commitment to shareholder returns is complemented by management's strategy of share buybacks, indicating confidence in the company's value.
On the operational front, Premier boasts a gross profit margin of 66.2% over the last twelve months, reflecting efficient cost management and strong pricing power within its niche. A moderate level of debt and the ability to cover interest payments with cash flows provide further assurance of the company's financial robustness. Additionally, Premier's stock is known for low price volatility, which might appeal to risk-averse investors.
While the company's revenue growth was flat in the last twelve months, the quarterly revenue growth showed a healthier 6.32% increase. Analysts are optimistic about Premier's profitability in the current year, despite some revising their earnings expectations downwards for the upcoming period. For investors seeking more detailed analysis, InvestingPro offers additional insights, including fair value estimates which currently suggest a potential undervaluation with an InvestingPro Fair Value of $30.37 compared to the previous close price of $20.02.
For those interested in exploring further, there are over 7 additional InvestingPro Tips available on Premier, Inc., which can be found at: https://www.investing.com/pro/PINC, providing a deeper dive into the company's financial metrics and market performance.
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