Charlotte-based Premier Stock Rises 14% After Results Beat Expectations

8/22/18

By Charlie McGee, NCBIZNews

Premier Inc. saw its stock jump 14.63 percent on Tuesday after reporting earnings and revenue for the fiscal 2018 fourth quarter that beat analyst expectations.

The Charlotte-based health care improvement company reported earnings of 70 cents per share, or net income of $94.8 million, for the quarter. That beat Wall Street expectations of 66 cents per share.

It also was a 35.2 percent improvement over the company’s net income of $70.1 million in fourth quarter 2017.

Premier also reported a 7.7 percent improvement on revenue, to $434 million from $403 million in the same quarter a year ago. Analysts predicted Premier’s revenue number to be only $411.89 million.

“These results capped a solid fiscal 2018 performance, once again demonstrating Premier’s consistent financial strength and operational excellence, which we believe solidify our continued leadership as we work with our nation’s health systems and other providers to transform healthcare delivery in America,” CEO Susan DeVore said in a statement.

The company recorded the biggest revenue boost in its supply chain services business, which offers things such as surgical products, pharmaceuticals and clinical engineering to health care providers. Premier posted a 9.5 percent increase in sales from that segment, to $339.2 million from $309.7 million in fourth quarter 2017.

The company also provided some guidance for the 2019 fiscal year. It expects net revenue to grow between 4 percent and 8 percent year-over-year.

It also expects earnings per share to be between $2.60 and $2.72 for the year, and analyst expectations fall right in the middle at $2.66. That would show between 13 and 18 percent earnings growth year-over-year for Premier.

The company noted that its per-share guidance does not account for a $250 million share repurchase plan that it will implement at some point in 2019.

Premier closed Tuesday at $43.95, an improvement of $5.61 from the day’s open. Its stock climbed an additional 2.16 percent in after-hours trading.