Premier (NASDAQ: PINC) reported Q2 EPS of $0.50, $0.02 better than the analyst estimate of $0.48. Revenue for the quarter came in at $411.4 million versus the consensus estimate of $392.86 million.

Fiscal 2018 Outlook and Guidance

Based on results for the six months ended Dec. 31, 2017, management’s current expectations for the remainder of fiscal 2018 and the realization of previously disclosed underlying assumptions, the company reaffirms its full fiscal-year 2018 guidance range for consolidated net revenue, Supply Chain Services and Performance Services segment revenue, and non-GAAP adjusted EBITDA. Within Supply Chain Services, products revenue is expected to grow 14% to 18% for the full fiscal year, compared with the previous assumption of 9% to 13%. The guidance range for non-GAAP adjusted fully distributed earnings per share is being increased to reflect expectations of the beneficial impacts of the federal corporate income tax reform and the full implementation of the company’s previously announced $200 million stock repurchase program. Tax reform is expected to positively impact fiscal 2018 non-GAAP adjusted fully distributed EPS by approximately $0.23, while the share repurchase is expected to add $0.03 to $0.05. As a result, the guidance range for fiscal 2018 non-GAAP adjusted fully distributed earnings per share is being increased to $2.24 - $2.37.

Q2 2018 Highlights:

• Net revenue increased 15% to $411.4 million from the same period last year; Supply Chain Services segment revenue rose 19% and Performance Services segment revenue increased 1% from the same period last year.
• Due almost entirely to a one-time remeasurement of deferred taxes resulting from the Tax Cuts and Jobs Act, which increased income tax expense to $231.5 million from $37.4 million a year ago, net income declined 92% to $19.8 million from the same period a year ago. Diluted net loss per share totaled $1.66 per share, compared with diluted net income of $1.50 per share in the prior year.
• Non-GAAP adjusted EBITDA* of $133.5 million increased 9% from the same period last year.
• Non-GAAP adjusted fully distributed net income* increased 7% to $70.0 million, representing non-GAAP adjusted fully distributed earnings per share* of $0.50, an increase of 9% over $0.46 per share from a year ago.
• The guidance range for fiscal 2018 non-GAAP adjusted fully distributed earnings per share is raised to $2.24 - $2.37 per share to reflect the expected increase from tax reform and the company’s stock repurchase program.

“We are continually looking for ways to improve the efficiency of our businesses and deliver value to our stockholders,” DeVore continued. “During the quarter, we announced and launched a $200 million stock repurchase program. We expect this program, combined with the anticipated benefits from federal tax reform, to meaningfully impact full-year non-GAAP adjusted fully distributed earnings per share, and we are increasing this guidance range accordingly. We are affirming our other guidance ranges, based on the year-to-date performance and our outlook for the remainder of fiscal 2018.

GUIDANCE:

Premier sees FY2018 EPS of $2.24-$2.37, versus the consensus of $2.12.

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