Premier (NASDAQ: PINC) reported Q4 EPS of $0.50, $0.02 worse than the analyst estimate of $0.52. Revenue for the quarter came in at $403.1 million versus the consensus estimate of $400.4 million.

Fiscal 2018 Outlook and Guidance

The statements in this “Fiscal 2018 Outlook and Guidance” discussion are “forward-looking statements.” For additional information regarding the use and limitations of such statements, see “Forward-Looking Statements” below and the “Risk Factors” section of the company’s most recent Form 10-K filed with the Securities and Exchange Commission (SEC), as updated from time to time in the company’s other filings with SEC filings.

Premier believes it remains well positioned financially and operationally for fiscal 2018, and is introducing financial guidance for the fiscal year based on the following key assumptions:

• Net administrative fees growth in the range of 13% to 17% comprised of mid-single digit growth in the company’s legacy GPO business augmented by contributions from Innovatix and Essensa. Mid-range revenue growth assumes a stable patient utilization environment and is expected to be achieved through increased penetration of existing members’ supply spend and the addition and contract conversion ramp-up of new GPO members consistent with historical trends. Note: the full-year net administrative fee revenue growth estimate reflects the impact of incremental revenue produced by Innovatix and Essensa, for which there was no comparable revenue in the year-ago first and second quarters, due to the acquisition timing and associated revenue recognition restrictions, and only partially comparable revenue recognized in the third quarter. The revenue contribution from this acquisition is expected to reflect a normalized run rate beginning with the fourth quarter.
• Revenue growth of the company’s products business approximating a year-over-year growth rate of 9 to 13 percent, including contributions from Acro.
• Performance consistent with the company’s current visibility into its annual revenue stream. Assuming the continuation of historical GPO retention and SaaS institutional renewal rates that are consistent with fiscal 2017 results, approximately 89% to 94% of Premier’s fiscal 2018 consolidated revenue guidance range is available under contract.
• A consolidated adjusted EBITDA margin in the range of 33% to 34%, consistent with the ongoing business mix shift associated primarily associated with the faster-growing and lower-margin products business.
• Capital expenditures of approximately $85 million to $90 million.
• An effective tax rate of approximately 39%.
• Stock-based compensation approximating $34 million to $37 million, the increase from fiscal 2017 primarily due to an increase in the number of employees eligible for equity compensation as a result of company expansion, growth in average grant size year over year and, to a lesser extent, an increase in anticipated performance achievement attributable to performance shares that vest at the end of fiscal year 2018.
• Amortization of purchased intangible assets of approximately $56 million.
• Adjusted fully distributed shares outstanding approximating 141 million.

Premier, Inc. introduces full-year fiscal 2018 financial guidance, as follows:

For earnings history and earnings-related data on Premier (PINC) click here.