COR Q4 Earnings & Revenues Beat Estimates, Gross Margin Improves
Cencora, Inc. COR reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of $3.84, which beat the Zacks Consensus Estimate of $3.74 by 2.7%. The bottom line also improved 15% year over year.GAAP loss per share was $1.75 against EPS of 2 cents in the year-ago period. The significant decline was primarily due to a rise in operating expenses.For full-year fiscal 2025, the company reported adjusted EPS of $16.00, up 16.3% year over year. GAAP EPS for fiscal 2025 was $7.96 compared with $7.53 in the previous year.Revenue DetailsRevenues totaled $83.73 billion, up 5.9% year over year. The top line beat the Zacks Consensus Estimate by 0.7%.For full-year fiscal 2025, the company reported total revenues of $321.33 billion, up 9.3% year over year.Cencora, Inc. Price, Consensus and EPS Surprise Cencora, Inc. price-consensus-eps-surprise-chart | Cencora, Inc. QuoteSegmental AnalysisU.S. Healthcare SolutionsRevenues in this segment totaled $75.8 billion, up 5.7% on a year-over-year basis. This improvement was driven by overall market growth on increased unit volume, including improved sales of GLP-1 drugs and specialty products.Segmental operating income totaled $872.4 million, up 25.1% year over year. Higher gross profit (as a result of increased product sales and the January 2025 acquisition of RCA) contributed to the upside, partly offset by increased operating expenses.International Healthcare SolutionsThis segment includes Alliance Healthcare, World Courier, Innomar and Profarma Specialty.Revenues amounted to $7.9 billion, up 7.6% year over year. The top line increased 5.7% at constant currency (cc).Operating income totaled $150.7 million, down 2% on a reported basis and 6% at cc. The reported decline was due to lower operating income at COR’s global specialty logistics and specialized consulting services businesses.Margin AnalysisCencora reported an adjusted gross profit of $2.9 billion, up 18.4% on a year-over-year basis. As a percentage of revenues, the adjusted gross margin was 3.55%, up 36 basis points (bps) year over year.The company recorded an adjusted operating income of $1.1 billion, up 20.6% year over year. As a percentage of revenues, the adjusted operating margin was 3.47%, which expanded 37 bps from the year-ago quarter’s level.Financial UpdateCOR exited the fiscal fourth quarter with cash and cash equivalents worth $4.36 billion compared with $2.23 billion in the previous quarter.Cumulative net cash used in operating activities totaled $4.98 billion compared with $618.1 million a year ago.Dividend UpdateCencora's board of directors declared a quarterly dividend of 60 cents per share. The new dividend is payable on Dec. 1, 2025, to shareholders of record at the close of business on Nov. 14, 2025.FY26 Guidance IssuedThe company issued its outlook for fiscal 2026 earnings and revenues.Adjusted EPS is estimated to be in the $17.45-$17.75 range. The Zacks Consensus Estimate for the same is pegged at $17.37.Total revenues are projected to rise 5-7%. Sales at the U.S. Healthcare Solutions segment are anticipated to grow in the range of 5-7%. For the International Healthcare solutions business, revenues are projected to rise 6-8% reportedly as well as at cc.Adjusted operating income is expected to improve 8-10% for fiscal 2026.Operating income for the U.S. Healthcare Solutions segment is expected to improve 9-11%, while the same for the International Healthcare Solutions business is estimated to improve 5-8%, reportedly as well as at cc.Our TakeCencora exited the fiscal fourth quarter on a strong note, with both its earnings and revenues beating the Zacks Consensus Estimate. The company’s EPS guidance for fiscal 2026 was also above estimates. However, shares were down 1.9% in pre-market trading. So far this year, COR’s shares have gained 53.3% compared with the industry’s growth of 2.8%. The S&P 500 Index was up 16.7% in the same time period.Image Source: Zacks Investment ResearchThe company continues to witness robust segmental performance due to growth in all markets and strong demand for specialty products and GLP-1 drugs. Per management, Cencora delivered a solid performance by playing a crucial role in the healthcare system while maintaining efficiency throughout its business. The company has been focused on its priorities. It has thoughtfully deployed capital to deliver long-term growth.The acquisition of RCA appears promising, as it is likely to bring additional revenues in fiscal 2026.Although COR’s margin has improved during the quarter, it continues to be negatively impacted by lower-margin GLP-1 drugs and the lack of exclusive COVID-19 therapy sales, which had higher margins. The company’s rising expenses to support business activities amid inflationary challenges put pressure on the operating margin. Cut-throat competition in the MedTech space is another headwind.COR’s Zacks Rank & Stocks to ConsiderCOR carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the broader medical space are Solventum Corporation SOLV, Boston Scientific Corporation BSX and Alcon ALC.Solventum, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 4.1%. SOLV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.91%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Solventum’s shares have gained 3.8% compared with the industry’s 2.6% growth so far this year.Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 16.4%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.36%.Boston Scientific’s shares have gained 10.9% compared with the industry’s 0.6% growth so far this year.Alcon, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.3%. ALC’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 4.61%.Alcon’s shares have lost 12.6% compared to a flat industry so far this year.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report Alcon (ALC): Free Stock Analysis Report Cencora, Inc. (COR): Free Stock Analysis Report Solventum Corporation (SOLV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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