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Mar 31, 2022
Premier Q3 2022 Earnings Report
Premier's Q3 2022 results reflected the continued normalization of Supply Chain Service revenue and Performance Services segment was affected by the timing of revenue.
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
Revenue by Segment
Supply Chain Services Revenue
CapyFin.comPerformance Services Revenue
CapyFin.com 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