Cencora, Inc. Set to Report Q4 Earnings, Analyst Outlook Mixed

Cencora, Inc. prepares for its Q4 earnings report, expected to show a robust earnings per share rise. Analysts maintain a cautious outlook, signaling that stock prices may see fluctuations based on these forthcoming results, highlighting recent performance compared to industry benchmarks.

Date: 27-10-2024

AI Rating: 6

Cencora, Inc. is gearing up to reveal its fiscal Q4 earnings results. Analysts predict a profit of $3.21 per share, marking an increase of 12.2% from $2.86 per share in the same quarter from the previous year. This positive forecast signals considerable growth, as the company has shown a pattern of surpassing earnings projections over the last four quarters, with a reported margin exceeding consensus estimates by 5% in the most recent quarter.

For fiscal year 2024, the expected earnings per share are projected at $13.64, reflecting a 13.8% increase from $11.99 in fiscal 2023. This anticipated growth indicates a strong upward trajectory for the company's profitability.

Despite the anticipated profit boost, the company's shares have underperformed compared to the S&P 500 Index, which gained 38.7%. However, Cencora outperformed the Health Care Select Sector SPDR Fund, achieving a return of 24% compared to the latter's 17.5% over the past 52 weeks. This context adds complexity to investor sentiment, considering the company's mixed performance relative to market indices.

The recent adjustment to an annual profit forecast range of $13.55 to $13.65 per share, spurred by high demand for specialty medicines, has positively influenced stock movements, evidenced by a 2.9% increase in share prices on July 31.

Regarding market sentiment, analysts currently rate Cencora's stock as a Moderate Buy, with a configuration of 10 Strong Buys and 5 Holds. This slight decline from a previous dominance of 'Strong Buys' may reflect caution among investors, as stocks are trading below the average analyst price target of $260.86.

Stocks: COR