Cencora (COR) Q3 2024 earnings summary

Executive summary

• Quarterly revenue rose 10.9% year-over-year to $74.2B, led by strong U.S. Healthcare Solutions and specialty product sales, especially GLP-1s.

• Adjusted diluted EPS increased 14.4% to $3.34, with adjusted free cash flow of $2.3B for the first nine months.

• Fiscal 2024 adjusted EPS guidance was raised to $13.55–$13.65, reflecting continued strong performance.

• Leadership transition announced: Steve Collis to become Executive Chair, Bob Mauch to assume CEO role effective October 1.

• Board declared a quarterly cash dividend of $0.51 per share.

Financial highlights

• Q3 consolidated revenue was $74.2B, up 10.9% year-over-year; U.S. Healthcare Solutions revenue grew 12.2% to $67.2B.

• Adjusted diluted EPS rose 14.4% to $3.34; GAAP net income was $483M; gross profit was $2.4B, up 6.5% year-over-year.

• Operating income was $878M (adjusted) and $672M (GAAP); net interest expense dropped 45.9% to $31M.

• Diluted shares outstanding decreased 2.1% to 200M, reflecting share repurchases.

• Ended the quarter with $3.3B in cash and $2.3B in adjusted free cash flow for the first nine months.

Outlook and guidance

• Fiscal 2024 adjusted EPS guidance raised to $13.55–$13.65, with consolidated revenue growth expected at ~12%.

• U.S. Healthcare Solutions revenue growth projected at 12–13%; International at 4–6%.

• Adjusted operating income growth forecasted at 10–11%; adjusted free cash flow guidance increased to $2.5–$3.0B.

• Capital expenditures for fiscal 2024 expected to be approximately $500M.

• Full-year share count expected below 201M.