Summary
Cencora, Inc. (COR) filed an 8-K on September 5, 2024, to update investors on recent business developments and performance expectations. The company has raised its full fiscal year 2024 adjusted diluted EPS guidance to a range of $13.60 to $13.70, reflecting strong ongoing results. This upward revision signals positive momentum for the current fiscal year. Looking ahead to fiscal year 2025, Cencora anticipates adjusted operating income and adjusted diluted EPS growth to be at the lower end of their long-term target ranges (5-8% and 8-12%, respectively). This is primarily attributed to headwinds from COVID-related products, including commercial vaccines and the phasing out of a prior exclusive COVID therapy contribution. Additionally, a potential June 2025 loss of an oncology customer due to an acquisition will moderately impact these expectations. On a positive note, the company has secured an important contract extension, extending its pharmaceutical supply agreement with Evernorth Health Services (formerly Express Scripts) by three years through September 2029.
Key Highlights
- 1FY2024 adjusted diluted EPS guidance increased to $13.60 - $13.70.
- 2FY2025 adjusted operating income and EPS growth expected at the bottom end of long-term targets (5-8% and 8-12%).
- 3Headwinds for FY2025 include decreased COVID product demand (vaccines) and prior year COVID therapy contributions.
- 4Potential loss of an oncology customer in June 2025 due to acquisition is a minor factor for FY2025 outlook.
- 5Pharmaceutical supply agreement with Evernorth Health Services extended for three additional years through September 2029.
- 6Company executives will present at multiple upcoming healthcare conferences, offering further insights.
- 7The filing serves as a Regulation FD disclosure, providing material non-public information concurrently to all investors.