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Dec 31, 2022

Cencora Q1 2023 Earnings Report

AmerisourceBergen reported a revenue increase of 5.4% year-over-year, with GAAP diluted EPS of $2.33 and adjusted diluted EPS of $2.71. The adjusted diluted EPS guidance range was raised to $11.50 to $11.75 for fiscal year 2023.

Key Takeaways

AmerisourceBergen reported a solid first quarter with a 5.4% increase in revenue to $62.8 billion. GAAP diluted EPS was $2.33, and adjusted diluted EPS increased by 5.0% to $2.71. The company raised its adjusted diluted EPS guidance for fiscal year 2023 to $11.50 to $11.75.

Revenue increased by 5.4% year-over-year to $62.8 billion.

GAAP diluted EPS was $2.33, compared to $2.13 in the prior year.

Adjusted diluted EPS increased by 5.0% to $2.71, from $2.58 in the prior year.

Adjusted diluted EPS guidance was raised to $11.50 to $11.75 for fiscal year 2023.

Total Revenue
$62.8B
Previous year: $59.6B
+5.4%
EPS
$2.71
Previous year: $2.58
+5.0%
Effective Tax Rate
19.8%
Previous year: 24.6%
-19.5%
Gross Profit
$2.15B
Previous year: $2.1B
+2.2%
Cash and Equivalents
$1.69B
Previous year: $3.17B
-46.6%
Free Cash Flow
$634M
Previous year: $784M
-19.1%
Total Assets
$57.9B
Previous year: $57.6B
+0.6%

Cencora

Cencora

Forward Guidance

AmerisourceBergen is updating its fiscal year 2023 financial guidance to reflect a lower average diluted share count, the earlier-than-expected close of the Company’s acquisition of PharmaLex, updated foreign currency translation rates and incrementally lower expectations for COVID treatment contributions for the year. Adjusted Diluted Earnings Per Share to be in the range of $11.50 to $11.75.

Positive Outlook

  • Adjusted Diluted Earnings Per Share to be in the range of $11.50 to $11.75, representing growth of 4 to 7 percent, raised from the previous range of $11.30 to $11.60
  • On a constant currency basis, adjusted diluted earnings per share growth to be in the range of 6 to 9 percent, raised from the previous range of 4 to 7 percent
  • Excluding contributions related to COVID-19, adjusted diluted earnings per share growth to be in the range of 9 to 11 percent, raised from the previous range of 7 to 9 percent
  • On a constant currency basis excluding contributions related to COVID-19, adjusted diluted earnings per share growth to be in the range of 11 to 13 percent, raised from the previous range of 9 to 11 percent
  • International Healthcare Solutions segment operating income to be in the range of a 3 percent decline to 1 percent growth, up from the previous range of a 7 to 3 percent decline

Challenges Ahead

  • U.S. Healthcare Solutions segment operating income growth to be in the range of 1 percent to 4 percent, widened from the previous range of 2 percent to 4 percent.
  • Expectations for segment operating income growth excluding COVID-19 contributions remain unchanged.
  • All other previously communicated aspects of the Company’s fiscal year 2023 financial guidance and assumptions remain the same.
  • Company does not provide forward looking guidance on a GAAP basis for free cash flow because the timing and amount of favorable and unfavorable settlements excluded from this metric, the probable significance of which cannot be determined, are unavailable and cannot be reasonably estimated.
  • Company does not provide forward looking guidance on a GAAP basis for such metrics because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated.