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Cencora (COR) to Report Q4 Earnings: What's in the Cards?
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Cencora (COR - Free Report) is scheduled to release fiscal fourth-quarter 2023 results on Nov 2, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 3.18%. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 3.45%.
Please note that Cencora was formerly known as AmerisourceBergen, which changed its name and ticker symbol to Cencora and COR, respectively, effective Aug 30.
Q4 Estimates
The Zacks Consensus Estimate for revenues is pegged at $66.57 billion, indicating an improvement of 8.8% from that reported in the prior-year quarter. The same for earnings is pinned at $2.79 per share, implying growth of 7.3% from the year-ago quarter’s reported number.
Factors to Note
Sustained strong growth in specialty product sales, coupled with broad-based solid performance and utilization trends across the portfolio in the U.S. Healthcare Solutions segment, might have favored COR’s fiscal fourth-quarter performance.
The commercial COVID-19 treatments recorded lower sales in the past two quarters. This trend is likely to have continued in the soon-to-be-reported quarter. Revenues from the U.S. Healthcare Solutions segment are expected to grow at least 9% in fiscal 2023. This may get reflected in the fiscal fourth-quarter results as well. Our model expects fourth-quarter revenues for this segment to be $58.9 billion.
Operating income at the aforementioned segment is anticipated to grow 4-5% in fiscal 2023. This is likely to be reflected in the fiscal fourth-quarter results. Our model predicts the segment’s adjusted operating income to be $605.5 million.
Apart from this, the International Healthcare Solutions segment’s World Courier unit is expected to have exhibited solid performance in the quarter under review. In fact, the unit’s impressive track record as an international leader in specialty logistics has enabled Cencora to serve customers globally. The company was able to do so despite a challenging COVID-induced environment and additional operational challenges.
Moreover, products of Alliance Healthcare, which was acquired by COR in 2021, are likely to have driven the latter’s top-line performance. However, the unfavorable impact of foreign currency translation and the divestiture of Profarma specialty might have offset growth from World Courier and Alliance Healthcare. The divestiture of the Brazil specialty business in June 2022 is likely to have caused lower sales growth.
Per the fiscal 2023 guidance, operating income at the International Healthcare Solutions segment is estimated to grow 0-4%. This is likely to be reflected in the upcoming quarterly results. Our model expects the segment’s adjusted operating income and revenues to be $173.1 million and $6.4 billion, respectively.
Our proven model does not conclusively predict an earnings beat for Cencora this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate is 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #2 at present.
Stocks to Consider
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this reporting cycle.
ShockWave Medical has an Earnings ESP of +6.07% and a Zacks Rank of 1 at present.
The stock has gained 0.6% year to date. SWAV’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 81.14%.
Baxter International (BAX - Free Report) has an Earnings ESP of +3.86% and a Zacks Rank of 2 at present.
The stock has lost 36.9% year to date. BAX’s earnings missed estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 2.44%.
Avanos Medical (AVNS - Free Report) has an Earnings ESP of +3.45% and a Zacks Rank of 3 at present.
The stock has lost 34.2% year to date. AVNS’ earnings missed estimates in the last reported quarter. It has a trailing four-quarter average negative earnings surprise of 0.61%.
Image: Shutterstock
Cencora (COR) to Report Q4 Earnings: What's in the Cards?
Cencora (COR - Free Report) is scheduled to release fiscal fourth-quarter 2023 results on Nov 2, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 3.18%. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 3.45%.
Please note that Cencora was formerly known as AmerisourceBergen, which changed its name and ticker symbol to Cencora and COR, respectively, effective Aug 30.
Q4 Estimates
The Zacks Consensus Estimate for revenues is pegged at $66.57 billion, indicating an improvement of 8.8% from that reported in the prior-year quarter. The same for earnings is pinned at $2.79 per share, implying growth of 7.3% from the year-ago quarter’s reported number.
Factors to Note
Sustained strong growth in specialty product sales, coupled with broad-based solid performance and utilization trends across the portfolio in the U.S. Healthcare Solutions segment, might have favored COR’s fiscal fourth-quarter performance.
The commercial COVID-19 treatments recorded lower sales in the past two quarters. This trend is likely to have continued in the soon-to-be-reported quarter. Revenues from the U.S. Healthcare Solutions segment are expected to grow at least 9% in fiscal 2023. This may get reflected in the fiscal fourth-quarter results as well. Our model expects fourth-quarter revenues for this segment to be $58.9 billion.
Operating income at the aforementioned segment is anticipated to grow 4-5% in fiscal 2023. This is likely to be reflected in the fiscal fourth-quarter results. Our model predicts the segment’s adjusted operating income to be $605.5 million.
Apart from this, the International Healthcare Solutions segment’s World Courier unit is expected to have exhibited solid performance in the quarter under review. In fact, the unit’s impressive track record as an international leader in specialty logistics has enabled Cencora to serve customers globally. The company was able to do so despite a challenging COVID-induced environment and additional operational challenges.
Moreover, products of Alliance Healthcare, which was acquired by COR in 2021, are likely to have driven the latter’s top-line performance. However, the unfavorable impact of foreign currency translation and the divestiture of Profarma specialty might have offset growth from World Courier and Alliance Healthcare. The divestiture of the Brazil specialty business in June 2022 is likely to have caused lower sales growth.
Per the fiscal 2023 guidance, operating income at the International Healthcare Solutions segment is estimated to grow 0-4%. This is likely to be reflected in the upcoming quarterly results. Our model expects the segment’s adjusted operating income and revenues to be $173.1 million and $6.4 billion, respectively.
Cencora, Inc. Price and Consensus
Cencora, Inc. price-consensus-chart | Cencora, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Cencora this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate is 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #2 at present.
Stocks to Consider
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this reporting cycle.
ShockWave Medical has an Earnings ESP of +6.07% and a Zacks Rank of 1 at present.
The stock has gained 0.6% year to date. SWAV’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 81.14%.
Baxter International (BAX - Free Report) has an Earnings ESP of +3.86% and a Zacks Rank of 2 at present.
The stock has lost 36.9% year to date. BAX’s earnings missed estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 2.44%.
Avanos Medical (AVNS - Free Report) has an Earnings ESP of +3.45% and a Zacks Rank of 3 at present.
The stock has lost 34.2% year to date. AVNS’ earnings missed estimates in the last reported quarter. It has a trailing four-quarter average negative earnings surprise of 0.61%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.