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Conshohocken, Pennsylvania-based Cencora, Inc. (COR) is a pharmaceutical sourcing and distribution company. With a market cap of $44.6 billion, Cencora operates through U.S. Healthcare Solutions and International Healthcare Solutions segments, providing pharmaceutical supplies, healthcare products, and services to various healthcare providers. It is expected to announce its Q3 earnings, before the market opens on Wednesday, July 31.
Ahead of the event, analysts expect Cencora to report a profit of $3.18 per share, up 8.9% from $2.92 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates over the past four quarters. Its EPS for the last reported quarter grew 8.6% to $3.80, exceeding the consensus estimates by 4.1%.
Over the longer term, analysts expect Cencora to report fiscal 2024 EPS of $13.46, up 12.3% from $11.99 in fiscal 2023, and jump another 9.7% to $14.77 in fiscal 2025.
COR stock has rallied 8.9% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 15.4% gains but slightly outperforming the S&P 500 Healthcare Sector SPDR’s (XLV) 8.4% returns over the same time frame.
Cencora's stock dipped 4.1% on May 1 following its Q2 earnings release. Despite exceeding EPS estimates and showing 7.8% year-over-year growth, it missed Wall Street’s revenue expectations and reported a 3.4% drop in net income.
However, with strong liquidity, 10.6% gross profit growth, consistent 22-year dividend payouts, and $436.4 million in share repurchases last quarter, Cencora showcases financial resilience and commitment to shareholders.
The consensus opinion on Cencora stock is bullish, with a “Strong Buy” rating overall. Out of the 15 analysts covering the stock, 11 recommend a “Strong Buy” and four suggest a “Hold” rating.
The average target price for Cencora is $255.78, indicating a potential upside of 14.4% from current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
