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Sep 30, 2023

Cencora Q4 2023 Earnings Report

Cencora's Q4 2023 earnings were reported, showing revenue increase and strong segment performance.

Key Takeaways

Cencora reported a 12.7% increase in revenue to $68.9 billion for Q4 2023. GAAP diluted EPS was $1.72, while adjusted diluted EPS increased by 10.0% to $2.86. The company's U.S. Healthcare Solutions and International Healthcare Solutions segments both contributed to the revenue growth.

Revenue increased by 12.7% to $68.9 billion compared to the same quarter in the previous fiscal year.

GAAP diluted EPS was $1.72, up 22.9% compared to the previous fiscal year fourth quarter.

Adjusted diluted EPS increased by 10.0% to $2.86.

U.S. Healthcare Solutions revenue increased by 13.0%, and International Healthcare Solutions revenue increased by 9.5%.

Total Revenue
$68.9B
Previous year: $61.2B
+12.7%
EPS
$2.86
Previous year: $2.6
+10.0%
Effective Tax Rate
21.8%
Previous year: 21.9%
-0.5%
Adjusted Effective Tax Rate
21.6%
Previous year: 19.8%
+9.1%
Gross Profit
$2.25B
Previous year: $1.99B
+13.5%
Cash and Equivalents
$2.59B
Previous year: $3.39B
-23.5%
Free Cash Flow
$1.65B
Previous year: $991M
+66.7%
Total Assets
$62.6B
Previous year: $56.6B
+10.6%

Cencora

Cencora

Forward Guidance

Cencora introduced its fiscal year 2024 financial guidance, expecting revenue growth in the range of 7 to 10 percent and adjusted diluted earnings per share to be in the range of $12.70 to $13.00.

Positive Outlook

  • Revenue growth to be in the range of 7 to 10 percent.
  • U.S. Healthcare Solutions revenue growth to be in the range of 7 to 10 percent.
  • International Healthcare Solutions revenue growth to be in the range of 4 to 8 percent.
  • Adjusted diluted earnings per share to be in the range of $12.70 to $13.00.
  • Adjusted operating income growth to be in the range of 4 to 6 percent.

Challenges Ahead

  • The Company does not expect a material contribution from exclusive COVID products beyond the fiscal 2024 first quarter.
  • International Healthcare Solutions segment operating income growth to be in the range of 1 to 4 percent.
  • Interest expense to be in the range of $210 million to $230 million.
  • Adjusted effective tax rate to be approximately 20 percent to 21 percent.
  • Capital expenditures in the $500 million range.