Premier Q3 2022 Earnings Report
Key Takeaways
Premier, Inc. reported a decrease in GAAP net revenue by 26% to $347.8 million compared to the same period last year. GAAP net income decreased by 24% to $39.1 million, and GAAP diluted EPS decreased by 18% to $0.32. The company is increasing its full-year adjusted earnings per share guidance to a range of $2.48 to $2.58.
GAAP net revenue decreased 26% to $347.8 million.
GAAP net income decreased 24% to $39.1 million.
GAAP diluted earnings per share (EPS) decreased 18% to $0.32.
Adjusted EPS decreased 11% to $0.57.
Premier
Premier
Premier Revenue by Segment
Forward Guidance
Premier is increasing its Supply Chain Services segment net revenue guidance to a range of $1.02 billion to $1.03 billion, raising its guidance for total net revenue to a range of $1.41 billion to $1.45 billion, raising the bottom end of and narrowing the range for adjusted EBITDA guidance to $490 million to $500 million, and increasing adjusted EPS guidance to a range of $2.48 to $2.58.
Positive Outlook
- Supply Chain Services segment net revenue guidance increased to $1.02B - $1.03B
- Total net revenue guidance raised to $1.41B - $1.45B
- Adjusted EBITDA guidance raised to $490M - $500M
- Adjusted EPS guidance increased to $2.48 - $2.58
- Net administrative fees revenue of $580 million to $600 million
Challenges Ahead
- Guidance does not include the effect of any potential future significant acquisitions
- Direct sourcing products revenue of $385 million to $405 million
- Capital expenditures of $85 million to $90 million
- Effective income tax rate in the range of 24% to 26%
- Free cash flow of 45% to 55% of adjusted EBITDA
Revenue & Expenses
Visualization of income flow from segment revenue to net income