Premier Reports Strong Q4 Results, Offers Guidance

Shares of healthcare improvement firm Premier Inc. (PINC) gained 2% on Tuesday after the company reported excellent financial results for the fiscal fourth quarter ended June 30. The shares rose another 0.2% in extended trade to finally close at $36.75.

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North Carolina-based Premier offers advisory, supply chain solutions, data and analytics and other services.

Adjusted earnings per share (EPS) increased 3% year-over-year to $0.60, beating the Street’s estimate of $0.59 per share. Quarterly net revenue grew 40% to $481.5 million, exceeding analysts’ expectations of $449.12 million.

The Supply Chain Services segment’s net revenue surged 51% year-over-year to $389.7 million, and net revenue of the Performance Services segment rose 9% to $91.8 million primarily due to the growth witnessed in the Contigo Health business. (See Premier stock chart on TipRanks)

The President and CEO of Premier, Michael J. Alkire, said, “We are committed to providing innovative, technology-based solutions to help drive better healthcare quality, lower costs and a more resilient supply chain.”

For Fiscal Year 2022, the company expects total net revenue to be in the range of $1.32 billion to $1.43 billion and adjusted EPS to lie between $2.50 and $2.60. Furthermore, it has projected Supply Chain Services revenue to range from $925 million to $1.01 billion and Performance Services revenue between $395 million and $420 million.

Last month, Robert W. Baird analyst Eric Coldwell maintained a Hold rating on the stock with a price target of $38 (3.6% upside potential). The analyst expects Premier to record earnings of $0.40 per share in the first quarter of Fiscal Year 2022.

Overall, the stock has a Hold consensus rating based on 1 Buy, 1 Hold and 1 Sell. The average Premier price target of $38.33 implies 4.5% upside potential. The company’s shares have gained 9.2% over the past six months.