CHARLOTTE, N.C. - Premier Inc. (NASDAQ: PINC), a leading healthcare improvement company, reported a strong performance for the fiscal 2024 third quarter ended March 31, 2024.
The company's adjusted earnings per share (EPS) came in at $0.55, surpassing the analyst estimates by $0.07. Revenue for the quarter was also above expectations, at $342.59 million compared to the consensus estimate of $318.51 million.
The company's third-quarter revenue growth represents a 6% increase over the prior-year period. This growth was attributed to the ongoing adoption of Premier's products and services by members and other customers, as stated by Michael J. Alkire, Premier’s President and CEO.
Despite a GAAP net loss of $49.2 million, which includes a substantial impairment charge related to the Contigo Health business, the adjusted EPS remained flat compared to the prior-year period, reflecting the company's operational strength.
For the fiscal year 2024, Premier has provided guidance that anticipates adjusted EPS to be between $2.06 and $2.18, with the midpoint of $2.12 slightly below the analyst consensus of $2.15. The company's revenue guidance for the year is set at $1.26 to $1.32 billion, with the midpoint of $1.29 billion aligning closely with the consensus of $1.3 billion.
Premier's financial health is further underscored by the execution of a $400 million accelerated share repurchase transaction, signaling confidence in its long-term value. The company expects this transaction to be fully settled by the first quarter of fiscal 2025.
The company's performance services segment saw a notable 9% increase in net revenue, driven by enterprise license agreements. The supply chain services segment also reported a 5% increase in net revenue, primarily due to higher net administrative fees revenue and software license, other services, and support revenue.
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