Premier Shares Fall 15% on Cut to Top End of FY Revenue Guidance

Dow Jones
2025/02/05
 

By Sabela Ojea

 

Shares of Premier on Tuesday dropped after the company cut the top end of its revenue outlook for fiscal 2025 and posted lower-than-expected adjusted earnings and revenue for the second quarter.

The stock was down 15.3% to $18.98 in afternoon trading, on pace for the largest percent decrease since May 2023. Shares have fallen more than 12% over the past 12 months.

The Charlotte, N.C.-based healthcare improvement technology company guided for full-year revenue of $940 million to $1.01 billion amid challenges in its performance services segment. It had most recently expected revenue of $930 million to $1.02 billion.

The company raised its adjusted per-share earnings outlook to $1.26 to $1.34 a share from $1.16 to $1.28 a share previously to reflect the impact of the additional $200 million stock buyback completed in early January.

Premier's outlook comes as it swings to a loss in the second quarter ended Dec. 31.

The company posted a net loss of $96 million, or $1.01 a share, compared with a profit of $54.3 million, or 45 cents a share, for the same period a year earlier.

Stripping out one-time items, the company's earnings came in at 25 cents. Analysts polled by FactSet had forecast higher adjusted earnings of 30 cents a share.

Quarterly revenue fell 14% to $240.3 million, missing the $243.2 million expected by Wall Street.

 

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

 

(END) Dow Jones Newswires

February 04, 2025 14:08 ET (19:08 GMT)

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