Will Speciality and GLP-1 Drugs Help COR Beat Q2 Earnings Estimates?

Cencora COR is slated to report second-quarter fiscal 2025 results on May 7, before market open.In the last reported quarter, the company delivered an earnings surprise of 6.57%. COR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 4.94%.(Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)Q2 EstimatesThe Zacks Consensus Estimate for revenues is pegged at $74.82 billion, up 9.4% from the prior-year quarter’s level. The consensus mark for earnings is pinned at $4.08 per share, indicating an improvement of 7.4% from the prior-year quarter’s figure.Factors to ConsiderCencora is expected to have delivered a moderate performance in the fiscal second quarter, following a strong start in the previous quarter. In its U.S. Healthcare Solutions segment, the company reported 14% revenue growth to $74 billion and a 10% increase in segment operating income. The growth is likely to have continued on the back of strong demand for specialty distribution as well as GLP-1 drugs.COR’s strong execution in distribution for physician practices and health systems, coupled with growing adoption of biosimilars, positions it well for consistent revenue performance. Moreover, the Retina Consultants of America’s acquisition in January should have brought in additional revenues during the quarter.Cencora, Inc. Price and EPS Surprise Cencora, Inc. price-eps-surprise | Cencora, Inc. QuoteHowever, the declining COVID-19 vaccine contribution might have hurt segmental sales as well as margins. Meanwhile, management expects sluggish growth in GLP-1 drug sales (compared with the 53% year-over-year increase seen in the first quarter).Our model expects revenues for this segment to be $66.61 billion. Adjusted operating income is estimated to be $901.9 million.On the international front, Cencora’s Healthcare Solutions segment posted 5.5% revenue growth (8.5% in constant currency) but a 3% decrease in reported operating income in the first quarter. The second quarter is expected to be weaker on a sequential basis, primarily due to a stronger U.S. dollar hurting reported growth, even as constant-currency volumes remain steady.The company also anticipates a continuation of softer performance in its specialty logistics business, particularly World Courier, due to muted activity in clinical trials and cell and gene therapies. Additionally, macroeconomic and operational softness in certain European and animal health markets may weigh on near-term performance. However, Cencora expects a rebound in the second half of the year as international logistics normalize and currency effects potentially ease.Our model expects the segment’s adjusted operating income and revenues to be $185.7 million and $7.41 billion, respectively.Earnings Beat LikelyOur proven model predicts 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.Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.82%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.Zacks Rank: Cencora currently has a Zacks Rank #2.Other Stocks Worth a LookHere are some other medical stocks worth considering, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.Premier PINC has an Earnings ESP of +13.82% and a Zacks Rank #2 at present.PINC’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 20.43%. The Zacks Consensus Estimate for fiscal third-quarter EPS implies a decline of 43.6% from the year-ago reported figure.You can see the complete list of today’s Zacks #1 Rank stocks here.HealthEquity HQY has an Earnings ESP of +2.03% and a Zacks Rank #3 at present. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 12.78%. The Zacks Consensus Estimate for fiscal first-quarter EPS implies an improvement of 1.3% from the year-ago reported figure.Progyny PGNY has an Earnings ESP of +2.68% and a Zacks Rank #3 at present. The company is scheduled to release first-quarter results on May 8.PGNY’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 54.91%. The Zacks Consensus Estimate for first-quarter EPS implies an improvement of 15.4% from the year-ago reported figure.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 Cencora, Inc. (COR): Free Stock Analysis Report Premier, Inc. (PINC): Free Stock Analysis Report HealthEquity, Inc. (HQY): Free Stock Analysis Report Progyny, Inc. (PGNY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks