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Cencora, Inc. (COR), headquartered in Pennsylvania, is a global pharmaceutical sourcing and distribution leader offering innovative healthcare solutions and services. With a market cap of $45.2 billion, customer-centric strategies, and sustainable practices, Cencora plays a pivotal role in advancing healthcare access and outcomes worldwide. Catering to a diverse range of healthcare providers and patients, the company is poised to report its Q1 earnings fiscal 2025 on Wednesday, Jan. 29.
Ahead of the event, analysts expect Cencora to report a profit of $3.50 per share, up 6.7% from $3.28 in the year-ago quarter. The company has consistently surpassed Wall Street’s adjusted EPS projections in each of the past four quarters.
In Q4, the company reported an EPS of $3.34, which topped the consensus estimates by 4.1%. Cencora's quarterly performance was driven by strong revenue growth, increased demand, and effective cost management, leading to earnings and revenue surpassing expectations.
Looking ahead, for fiscal 2025, analysts expect Cencora to report an adjusted EPS of $15.39, up 11.9% from $13.76 in fiscal 2024.
Cencora’s shares have increased 10.8% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) robust 25.8% gain and the modest returns of the Health Care Select Sector SPDR Fund (XLV).
Cencora's stock has demonstrated steady growth, driven by strong quarterly earnings and a positive analyst outlook, even though it hasn't risen as much as the broader market. The company's innovative product offerings and strategic partnerships have further strengthened its market position.
On Nov. 6, Cencora's shares rose nearly 5% following better-than-expected Q4 earnings. The company reported a 14.7% year-over-year revenue increase, reaching $79.1 billion. For fiscal year 2025, Cencora expects adjusted operating income to grow by 5% to 6.5%, with revenue growth projected between 7% and 9%.
Analysts' consensus rating on COR stock is optimistic, with a "Strong Buy" overall rating, an upgrade from a "Moderate Buy" rating three months ago. Out of 15 analysts covering the stock, 11 suggest a "Strong Buy," and the remaining four advise a "Hold."
COR's average analyst price target is $274.29, suggesting a potential upside of 17.1% from the current levels.
